Newly floated fund manager GDI Property will acquire a 7-asset portfolio from UGL Limited on a sale and leaseback basis for $66.5 million. The portfolio comprises 6 industrial properties and an office building across NSW, QLD and WA.
The new portfolio will form the basis of an external, unlisted fund, to be managed by GDI and pitched at wholesale and sophisticated investors. The lease arrangement with UGL, an engineering and infrastructure services group, is over ten years, with a five-year option and annual rent increases. The new fund is expected to have an initial distribution yield of 9.75 per cent for the financial year ending June 30, 2015. GDI will be looking to raise $43.5 million from wholesale investors.
Source: Australian Financial Review - 20 May 2014