Growthpoint acquires 18.2% of Industrial REIT for $68.1m

Company News

by Jessica Amir

Growthpoint Properties Australia (ASX:GOZ) has acquired an 18.2 per cent interest in another real estate investment trust, Industria REIT (ASX:IDR) for $68.1 million.

Growthpoint Properties says the purchase was funded through its undrawn debt facilities and it represented $2.30 per IDR security. 

Industria REIT listed in December 2013 and owns 8 office and 7 industrial properties in Australian capital cities, valued at $552.3 million. 

The investment in IDR reflects a FY17 yield of 7.9 per cent for Growthpoint, however the purchase will be accretive to Growthpoint’s FY18 funds from operations (FFO).

The purchase also is not material to its FY18 guidance or gearing.

Shares in Growthpoint Properties Australia (ASX:GOZ) last traded 0.94 per cent lower yesterday at $3.15.

 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.