This article is from the Australian Property Journal archive
ASX-listed Garda Property Group has netted a $22.5 million valuation uplift across Queensland industrial sites and Richmond office buildings.
The revaluations covered nine assets, or 60% of its total portfolio and take its value to $603.3 million. The value of the properties assessed was $359.2 million.
Its weighted average capitalisation rate (WACR) compressed 15 basis points to 5.12% after each revalued property’s WACR firmed by 0.25%.
The biggest increase in value was seen in Melbourne’s inner suburb of Richmond. Garda’s Botanicca 7 building increased $5 million to $63.5 million, and Botanicca 9 by $6 million to $68.5 million.
Garda this week announced that Fulton Hogan had committed to a new six-year lease at Botanicca 7, where it has occupied 1,847 sqm since 2010.
Following the lease renewal, only 6% of Garda’s portfolio gross income is due to expire before 30 June next year. It includes another Botanicca 7 tenant representing 3% of the expiry and four tenants in Cairns across 1,337 sqm.
Following the re-commitment, and settlement of the vacant 8-10 Cato Street building in Hawthorn East, Garda’s portfolio is 90% occupied with a weighted average lease expiry of 5.6 years. The Hawthorn property is being refurbished and marketed for leasing.
The Volvo warehouse and dealership delivery centre and showroom facility in Wacol lifted $4 million to $61.5 million.
Gains were also seen at its Pinkenba asset, used as a resource recovery facility for soil, rock, gravel and construction materials, at a warehousing and distribution facility in Morningside, and a vacant Acacia Ridge site on the boundary of rail yards and an intermodal terminal.
Net tangible assets increased by $0.14 to $1.86 per stapled security. Garda’s previous closing price represented a 9.1% discount to the revised NTA.
Gearing is now at 37.1%.
