GARDA Diversified Property Fund (ASX: GDF) announced three significant transactions; including an acquisition, an equity raising and an internalisation proposal.
GDF announced the acquisition of two industrial properties for $41M, indicating a capitalisation rate of 5.75% and an initial passing yield of 6.57%. The warehousing and distribution assets located at 326 and 340 Thynne Road, Morningside QLD, are 100% occupied, deliver a 3.35-year WALE and have 16,979sqm of NLA. GDF also announced the successful completion of an institutional placement of 22.5M units at $1.40 per unit. The proceeds will be used to fund the property acquisitions mentioned above.
GDF also announced a proposal to staple its units with its manager, GARDA Capital Group (ASX: GCM). The proposal would see each GCM unitholder receive 1.6 units in the new stapled entity for every 1 unit of GCM currently held. The stapling proposal would benefit unitholders via the elimination of management fees and property, leasing and capex fees being paid and follows on from the recent internalisation undertaken at Abacus Property (ASX: ABP). Over the coming months, GDF and GCM unitholders will be asked to vote on the stapling proposal, with implementation targeted for late November if successful.