GARDA Diversified Property Fund (GDF) has acquired a new 13,843sqm state-of-the-art distribution facility in Mackay for $29.5 million on a 7.7 per cent yield. The property is leased to Wesfarmers subsidiary Blackwoods until 2029, with options to 2039.
The purpose built facility is strategically positioned on a 3.01ha site at 69-79 Diesel Drive, about 8km from Mackay CBD, with proximity to the airport and the intermodal terminal.
GDF is externally managed by ASX listed GARDA Capital Group, whose assets under management have increased by 19 per cent to approximately $183 million as a result of the acquisition.
The Group’s Managing Director, Matthew Madsen said: “This acquisition by GDF demonstrates the ability of the GARDA Capital Group to prudently increase assets under management through this high quality long dated leased asset, which in turn will provide both strong operational revenues and investment returns.”
Simon Beirne, State Chief Executive of Queensland at Colliers International who negotiated the deal marketed the property via an Expressions of Interest campaign in conjunction with Burgess Rawson.
“The campaign generated significant interest with investors turning their attention to regional areas due to the lack of supply in capital cities,” said Mr Beirne.
“REITS, syndicators and private investors from around Australia were looking at the property due to its long term lease to Wesfarmers, and the net income of $2,234,409 per annum plus GST along with substantial depreciation allowances.
“These type of assets continue to be tightly held even in regional locations. There is no doubt that it is currently a vendor’s market with high quality assets with long term leases receiving significant enquiry volumes.
“This has resulted in competition causing yields to compress substantially as investors put a premium on the long term, secure cash flows provided by these annuity-type assets,” Mr Beirne said.
Blackwoods was founded in 1878 and is now Australia’s dominant business to business supplier of industrial, engineering and workplace safety needs with 63 outlets nationwide.