Garda Capital pays $5.9m for vacant site

Australian Financial Review 13 June 2019

ASX-listed Garda Capital has acquired a 4.1 hectare undeveloped industrial site in south-west Brisbane for $5.9 million as an asset for its fund, Garda Diversified Property Fund.

Its development partner Development Directive has since lodged plans to build three warehouses with a total area of 17,000 square metres at the site at 498 Progress Road in Wacol.

Construction is expected to start this year and finish by January 2020. King and Co and CBRE have been appointed to lease the buildings.

The new Wacol acquisition is part of Garda’s “building to own” investment strategy and the group is interested in industrial properties on the Melbourne fringe and the southern western corridor of Brisbane.

Garda Diversified Property Fund has almost $350 million of industrial and commercial property assets under management.

Strategic Directive

Courier Mail 31 May 2019

A DEAL to secure an industrial development site in the city’s west has sealed a strategic relationship between two Brisbane-based companies.

The $5.9 million purchase of a 4.1ha site at Wacol is the first time listed investment and funds manager Garda Capital Group and planning and project consultancy Development Directive have teamed for a property play.

Plans have been lodged with a view to developing three architecturally-designed, freestanding warehouse building with a total lettable area of 17,000sq m on the site at Progress Rd.

Development Directive identified and secured the Wacol holding on behalf of the Garda Diversified Property Fund, which has almost $350 million of industrial and commercial property assets under management including six properties in the sought-after Brisbane industrial suburbs of Berrinba, Heathwood, Lytton, Pinkenba and Wacol.

The new Wacol acquisition is part of a strategic move by Garda towards “building to own” its assets, primarily in the Melbourne fringe office market and the undersupplied southwest corridor of the Brisbane industrial market.

Garda executive chairman Matthew Madsen said he was delighted the group’s new relationship with Development Directive was already delivering results for both parties. “Garda and Development Directive had independently identified the potential of Brisbane’s southwest corridor,” he said. “The location is right, zoned land is available and demand for turnkey product is on the rise as overall market conditions continue to improve. “Combining Garda’s capital and strategic direction with Development Directive’s proven capabilities and market knowledge was a logical step.”

Development Directive Director Lachlan Macgregor said it was exciting to secure such a good property for Garda in their first transaction together. “This project will provide the market with much needed stock to meet current demand,” he said.

Pending approvals, earth-works for the development are expected to commence in the last quarter of 2019.