Featured

Growthpoint Properties Quarterly Update


Growthpoint reaffirmed their guidance for FY19 following steady progress in the 3rd Quarter of 2018. Growthpoint expect FF0 per security of 'at least’ 24.6 cents and a distribution per security of 23.0 cents.

The key highlights in the 3rd Quarter are;

Acquisitions

Growthpoint confirmed that settlement of the acquisition of 836 Wellington Street, West Perth, WA has occurred (31 October 2018). The property was purchased for $91.3 million reflecting a market yield of 6.25% and a passing yield of 5.3%

Divestments

Growthpoint also provided an update on the sale of Quads 2 & 3, Sydney Olympic Park, NSW. Quads 2 & 3 were marketed for sale in August 2018 and attracted good interest from both domestic and offshore purchasers. While a number of offers were received at the relevant book values, the intention was only to sell the properties should a higher price be realisable from the potential to convert the properties to residential use (as was achieved in the recent sale of Growthpoint’s Woolworths Distribution Centre in Mulgrave, Victoria in 2017). Given the anticipated premium for higher and better use as residential was not able to be achieved, the sales campaign has been closed and the properties will be retained.

#Growthpoint