Garda Property Triples Industrial Development Pipeline

19 May 2021

GARDA Property Group has executed unconditional contracts to acquire three industrial development properties in Brisbane worth $30m.

The Portfolio includes;
▪ Progress Road, Wacol – 41,250sqm of land acquired for $7.2 million delivering possible built form pipeline GFA of approximately 17,000sqm.
▪ Bandara Street, Richlands – 30,351sqm of land acquired for $6.8 million delivering possible built form GFA of approximately 13,000sqm.
▪ Boundary Road, North Lakes – 32.38 hectares of land acquired for $16.0 million delivering possible built form GFA of approximately 98,000sqm.

The acquisitions are consistent with GARDA’s successful “develop to own” strategy and will add 128,000 sqm of possible built form GFA, trebling GARDA’s existing industrial development pipeline of 44,309 sqm.

The acquisitions will be funded from available debt facilities and proposed debt facility increases following recent property revaluations.

GARDA’s Executive Chairman, Matthew Madsen, said “following settlement of these acquisitions, 52 percent of GARDA’s property portfolio by value will comprise high quality industrial properties in attractive locations. This proportion will increase as our 172,000sqm industrial pipeline is built out”.

The Wacol property comprises 41,250sqm at 372 – 405 Progress Road, adjacent to GARDA’s Pinnacle on Progress asset at 498 Progress Road. It will cost $7.2 million (plus costs) when it settles from May 2021.

Development approval for the site is anticipated in the first half of CY2022 with civil works to be completed in the second and third quarters. Expected total land costs3 are marginally higher than the $342/m² achieved at Pinnacle on Progress.

The new site should complement the existing Wacol site with completion of civil works and commencement of construction expected to align with construction completion of Buildings A and B at Pinnacle on Progress.

The Richlands property comprises 30,351sqm at 56 – 72 Bandara Street, in close proximity to GARDA’s Metroplex Westgate property, and will cost $6.8 million (plus costs) when it settles in September 2021.

Bandara Street is currently undergoing significant development with 40,000m² of industrial buildings currently under construction. Bandara Street is not an arterial road and therefore provides a price competitive site with excellent access to various road networks.

The site acquired by GARDA is flat and development ready with negligible preparation costs anticipated. The timing of construction will be based on pre-commitment leasing outcomes.

The North Lakes property comprises 32.38 hectares at 109-135 Boundary Road, located approximately one kilometre east of the Bruce Highway / Boundary Road interchange. It will cost $16.0 million (plus costs) when it settles on 17 June 2021.

GARDA’s intention is to create a master planned business industrial park including dedicated precincts that support the development of premises for small, medium, and large customers. After settlement, it is anticipated that it will take approximately 12 months to finalise town planning and relevant approvals and a further 12 months to complete bulk earth works and initial civil works.

On completion of these works and allocations for internal roads and green space, the site will provide 22.4 hectares of net developable industrial land, delivery a potential 98,000m² of built form GFA.

GARDA’s property portfolio has performed well throughout the COVID-19 pandemic with negligible loss of income, materially positive revaluations and solid leasing outcomes.

GARDA reconfirms its FY21 distribution and payout ratio guidance of 7.2 cents per security, representing 95% to 100% of FY21 funds from operations.