This article is from the Australian Property Journal archive
GARDA Property Group has collected three industrial development sites in Brisbane for a combined $30 million, with the potential gross floor area of 128,000 sqm trebling the ASX-listed group’s existing industrial pipeline.
The group has been encouraged by the recent sizable portfolio valuation uplift that was underpinned by the booming demand for warehousing and logistics.
Among the new acquisitions is a 32.38 hectare site at 109-135 Boundary Road in North Lakes, located about a kilometre east of the Bruce Highway and Boundary Road interchange, and which was picked up for $16 million.
It has a possible built form of 98,000 sqm and Garda intends to create a master planned business industrial park including dedicated precincts that support the development of premises for small, medium, and large customers.
The site will be far and away Garda’s largest industrial development project. After settlement in June, 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.
The site will provide 22.4 hectares of net developable industrial land on completion of these works and allocations for internal roads and green space.
Also acquired was a 41,250 sqm site at 372-405 Progress Road in Wacol, adjacent to tis Pinnacle on Progress asset at 498 Progress Road. Garda paid $7.2 million for the property, which has a possible build of up to 17,000 sqm, and for which it intends to complement the existing site. Approval for the new site is anticipated in the first half of calendar 2022, with civil works and commencement of construction expected to align with construction completion of Building A and B at Pinnacle on Progress.
Garda also bought 56-72 Bandara Street in Richlands, spanning 30,351 sqm close to its Metroplex Westgate property. The site was acquired for $6.8 million and currently has 40,000 sqm of industrial buildings under construction.
Garda anticipates negligible preparation costs for the flat and development ready site, and which Garda said is not an arterial road therefore providing a price competitive site with excellent access to various road networks.
Timing of construction will be based on pre-commitment leasing outcomes.
Prior to the acquisitions, Garda had an existing industrial pipeline of 44,309 sqm.
“Following settlement of these acquisitions, 52% of Garda’s property portfolio by value will comprise high quality industrial properties in attractive locations,” Garda’s executive chairman, Matthew Madsen said.
“This proportion will increase as our 172,000 sqm industrial pipeline is built out.”
Garda reconfirmed its full year distribution and payout ratio guidance of 7.2c per security, representing 95% to 100% of FY21 funds from operations.
