Growthpoint Announces $268m Asset Sale
Key points
- 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%
Full summary
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.
Guidance
Expected to deliver 12% unlevered property IRR, lower gearing by 4%
Outlook
Growthpoint expects the divestment to deliver an unlevered property internal rate of return of approximately 12%.
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