Garda Property Group has agreed to sell its Heathwood industrial property for $17.5 million, 6.7% above its independent valuation. If the buyer secures finance, the sale will help cut drawn debt and take gearing lower alongside the previously announced Pinkenba disposal.
- $17.5 million Heathwood sale agreed
- 6.7% premium to independent valuation
- Buyer finance confirmation due by 12 October
- Gearing projected to fall to 23.8% after both disposals
- Net tangible assets per security expected at $1.64
Heathwood contract exceeds independent valuation
Garda Property Group (ASX:GDF) has found a buyer willing to pay $17.5 million for its Heathwood industrial property, putting a useful premium on the asset rather than merely clearing it from the balance sheet. The price is $1.1 million, or 6.7%, above an independent valuation of $16.4 million.
The buyer is The Landrich Trust, an entity associated with the Cypress Tyres group. The contract is conditional only on finance, with confirmation due by 12 October 2026. Settlement is scheduled for on or before 20 November, leaving completion dependent on a defined but still unresolved funding condition.
Debt reduction becomes the main payoff
Garda intends to direct the net sale proceeds towards debt reduction. Following the Heathwood transaction, drawn debt would fall by approximately $17.2 million to $158.8 million, while gearing would reduce to 29.0%. Net tangible assets per security would increase to $1.65.
The bigger balance-sheet change comes when Heathwood is combined with the Pinkenba property sale announced the previous day. Garda says the two disposals would reduce drawn debt by approximately $50.1 million in total to $125.9 million, with gearing reaching 23.8%. NTA per security would instead settle at $1.64 on that combined basis.
That difference in NTA is a reminder that debt reduction and asset sales do not move every measure in lockstep. For now, the immediate test is not the headline price but whether the Heathwood purchaser confirms finance by 12 October and both transactions reach settlement without changing the company’s expected debt profile.
Bottom Line?
The valuation premium strengthens Garda’s deleveraging plan, but the projected balance-sheet improvement still depends on finance confirmation and settlement of the asset sales.
Questions in the middle?
- Will The Landrich Trust confirm finance by the 12 October deadline?
- Will both property settlements complete on the announced timetable?
- How will Garda’s final debt, gearing and NTA metrics compare once the disposals are completed?