The Growthpoint Properties Australia (ASX: GOZ) share price is in focus after it announced the $267.7 million sale of its Woolworths distribution centre at Perth Airport, expected to lower pro forma gearing by about 4%.
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What did Growthpoint Properties Australia report?
- Agreement to divest 20 Colquhoun Road, Perth Airport for $267.7 million
- Asset was originally acquired for $101.6 million in 2009
- Recent and previous expansions of approximately 10,700 sqm and 15,000 sqm, respectively, completed
- Net sale proceeds expected to lower pro forma gearing by approximately 4%
- Transaction targeting an unlevered property internal rate of return of about 12%
- Settlement expected in early 2027, subject to expansion completion and FIRB approval
What else do investors need to know?
The divestment is part of Growthpoint's ongoing capital recycling strategy, aiming for more efficient capital management and portfolio optimisation. The sale follows over 15 years of value creation since the asset became part of the company's seed portfolio.
Settlement is subject to the completion of the expansion underway at the site, alongside FIRB approval and customary conditions. Growthpoint will use the proceeds to further strengthen its balance sheet and support its disciplined approach to asset management.
What did Growthpoint Properties Australia management say?
Ross Lees, Chief Executive Officer and Managing Director, 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%.
What's next for Growthpoint Properties Australia?
Growthpoint expects the transaction with Hesperia to be finalised in early 2027, pending the successful completion of the distribution centre expansion and regulatory approvals. The company maintains its focus on disciplined capital management and intends to use proceeds to further reduce leverage and invest in new opportunities within its property portfolio.
Looking ahead, Growthpoint will continue working towards its sustainability targets, including its Net Zero target for operationally controlled office assets by July 2025, and maintain its position as a trusted partner in the Australian real estate market.
Growthpoint Properties Australia share price snapshot
Over the past 12 months, Growthpoint shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
