Garda unlocks debt relief with Pinkenba property sale

Pinkenba sale sets up another debt reduction

Garda Property Group (ASX:GDF) has found a buyer for its Pinkenba industrial property, agreeing a conditional sale that could remove approximately $32.9 million from its drawn debt. The $33.25 million price is slightly below the property's independent valuation of $34.0 million, a discount of roughly 2.2%.

The asset at 70-82 Main Beach Road has been marketed off-market while Garda pursued reinstatement works and efforts to re-lease the property. The sale campaign was flagged in July and discussed again in the group's annual results presentation, making the contract a progression of an existing strategy rather than a surprise disposal.

Debt metrics improve if contract completes

Garda said the net proceeds will be used to reduce drawn debt from approximately $176.0 million to $143.1 million. That would bring gearing to 26.7%, while net tangible assets per security would remain unchanged at $1.64.

The balance-sheet benefit is therefore the central shareholder takeaway. The announcement does not disclose the property's contribution to earnings, transaction costs or tax effects, so the filing gives no basis for assessing how the disposal might alter ongoing income beyond the stated debt reduction.

Buyer due diligence remains the immediate hurdle

2MB Co Pty Ltd has until 13 October 2026 to complete due diligence. If that condition is satisfied, settlement is scheduled for 22 January 2027. Until then, the debt reduction and gearing outcome remain prospective rather than completed.

The next material test is whether the contract moves through due diligence without changing the stated timetable or economics. A successful settlement would give Garda a clearer path to the lower debt balance; the filing leaves open what the group will do with the resulting balance-sheet capacity after the Pinkenba asset exits the portfolio.