• Growthpoint sells Woolworths distribution center for $267.7m
• Part of capital recycling program
• Expected to deliver 12% unlevered property IRR
• Net proceeds to lower pro forma gearing by 4%

Growthpoint Properties Australia (ASX: GOZ) has announced the sale of its Woolworths distribution center at 20 Colquhoun Road, Perth Airport, Western Australia, for a gross consideration of $267.7 million to Hesperia. This transaction is part of Growthpoint's disciplined capital recycling program, focusing on efficient capital management. The asset, originally valued at $101.6 million in 2009, has seen expansions totaling approximately 25,700 sqm. Growthpoint expects the divestment to deliver an unlevered property internal rate of return of approximately 12%. The net proceeds from the sale will lower pro forma gearing by approximately 4%. The settlement is conditional on the completion of the current expansion project, FIRB approval, and other customary conditions, with completion expected early in calendar year 2027.

Expected to deliver 12% unlevered property IRR, lower gearing by 4%

Growthpoint expects the divestment to deliver an unlevered property internal rate of return of approximately 12%.