Garda’s Cairns Corporate Tower Sale Set at $77.5 Million, Slightly Above Valuation
Garda Property Group has entered a call option agreement with Halpin Property Group to sell its Cairns Corporate Tower for $77.5 million, slightly above valuation, aiming to reduce debt and sharpen its asset focus.
- Call option agreement signed for Cairns Corporate Tower at $77.5 million
- Sale price marginally exceeds independent valuation of $77.4 million
- Purchaser has until 19 August 2025 to exercise option, settlement by 19 September
- Proceeds will reduce Garda’s drawn debt by approximately $191 million
- Post-sale, Garda will focus property ownership on Brisbane industrial assets
Strategic Asset Divestment
Garda Property Group has taken a decisive step in reshaping its portfolio by entering into a call option agreement with Halpin Property Group for the sale of its last remaining commercial office building, Cairns Corporate Tower. The agreed price of $77.5 million slightly exceeds the independent valuation of $77.4 million, signaling confidence in the asset's value despite a challenging commercial property market.
Timing and Financial Impact
The purchaser holds until 19 August 2025 to exercise the call option, with settlement expected by 19 September 2025. This timeline provides a clear window for the transaction to complete, allowing Garda to plan its financial strategy accordingly. The net proceeds from this sale, combined with anticipated funds from the North Lakes divestment, will reduce Garda’s drawn debt by approximately $191 million, bringing gearing down to a conservative 14.7%.
Refocusing on Core Assets
This divestment marks a strategic pivot for Garda, concentrating its property holdings exclusively on Brisbane’s industrial sector. By shedding its commercial office exposure in Cairns, Garda appears to be doubling down on industrial real estate, a sector that has shown resilience and growth potential amid evolving market dynamics.
Market and Investor Implications
Investors will likely view this move as a prudent effort to strengthen the balance sheet and streamline operations. The slight premium over valuation may also suggest underlying demand for quality commercial assets in regional markets like Cairns. However, the ultimate impact hinges on the purchaser’s decision to exercise the option, which remains pending.
Looking Ahead
As Garda prepares for the potential completion of this sale, market watchers will be keen to see how the company leverages its improved financial position and whether it will pursue further asset optimisation or expansion within Brisbane’s industrial landscape.
Bottom Line?
Garda’s Cairns sale could mark a turning point, but the call option’s exercise remains the key to unlocking its strategic ambitions.
Questions in the middle?
- Will Halpin Property Group exercise the call option by the August deadline?
- How will the reduced debt and gearing influence Garda’s future investment strategy?
- What are the prospects for Garda’s Brisbane industrial portfolio post-divestment?
