Growthpoint Properties Australia (ASX:GOZ) Announcement

Growthpoint Properties Australia (ASX:GOZ) has announced the establishment of the Growthpoint Australia Logistics Partnership (GALP) with TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG Inc. (NASDAQ:TPG). The partnership involves the formation of an industrial fund partnership to acquire approximately 80% interest in a portfolio of six existing Growthpoint industrial assets at book value. The net sale proceeds of $181 million will lead to a reduction in pro forma gearing by 2.0% to 38.7%, with a special distribution of 2.1 cents per security (cps) forecast subject to the completion of the transaction.

Executive Commentary

Ross Lees, Growthpoint's CEO and Managing Director, expressed, 'We are pleased to form this capital partnership alongside an aligned global institutional partner with extensive investment experience. This partnership supports Growthpoint's strategy to grow its funds management business and capital partnerships, and is a testament to the strength of our industrial portfolio.'

Summary of Announcement

Growthpoint Properties Australia (ASX:GOZ) has entered into an agreement to establish the Growthpoint Australia Logistics Partnership (GALP) with TPG Angelo Gordon. The partnership will involve acquiring approximately 80% interest in a portfolio of six existing Growthpoint industrial assets at book value, resulting in net sale proceeds of $181 million and a reduction in pro forma gearing by 2.0% to 38.7%. The partnership aims to focus on growing in the logistics sector in Australia. The proceeds from the sale of the seed portfolio will initially be used to repay debt, with a one-off special distribution of 2.1 cents per security (cps) forecast to aid payment of the tax associated with the capital gain. Settlement of the transaction is expected to complete around December 2024, subject to Foreign Investment Review Board (FIRB) approval. There is no change to FY25 funds from operations (FFO) guidance. This announcement signifies Growthpoint's commitment to expanding its funds management business and capital partnerships, reinforcing the strength of its industrial portfolio.