Growthpoint Properties sells two QLD properties to reduce debt

Company News

by David Chau

Australian REIT, Growthpoint Properties Ltd (ASX:GOZ), has entered into contracts to sell two assets in its property portfolio, as part of its capital management initiative.

Growthpoint has sold a 12,980 sqm office building at Nundah, Queensland, to Centuria Property Funds for $106.25 million.

The REIT also sold an 8,680 sqm industrial facility at Yatala, Queensland, to a private investor for $10.65 million.

Growthpoint says both sale prices exceeded their respective book values by 3% each, as at 31 December 2016.

Growthpoint will use these sales to pay down existing debt, reducing its gearing ratio to 39.4%.

Yesterday, Growthpoint shares closed 1.46% lower at $4.72.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.