Growthpoint Properties Australia (Growthpoint) is pleased to announce it has entered an agreement to divest the Woolworths distribution centre at 20 Colquhoun Road, Perth Airport, Western Australia for a gross consideration of $267.7 million1 to Hesperia.
The transaction is a continuation of Growthpoint's disciplined capital recycling program as part of its focus on efficient capital management.
The leasehold asset formed part of the Growthpoint seed portfolio in 2009, valued at $101.6 million2. Since that time, Growthpoint has completed an approximately 15,000 sqm expansion in 2009 and, more recently commenced a further 10,700 sqm expansion.
Growthpoint’s Chief Executive Officer and Managing Director, Ross Lees, said, “This transaction demonstrates the value we create through active asset management.
“After more than 15 years of value creation, now is the appropriate time to recycle capital from this asset, as this divestment is expected to deliver an unlevered property internal rate of return of approximately 12%.”
Net proceeds on settlement would lower pro forma gearing by approximately 4%.
Settlement is conditional on the completion of the distribution centre expansion project currently underway, FIRB approval and other customary conditions, and the transaction is expected to complete early calendar year 2027.
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- On completion of current expansion works.
- As at 30 June 2009.
