Charter Hall has agreed to buy seven Brisbane industrial properties for $300 million, as vendor Garda Property Group prepares to exit direct property ownership and shift its focus to real estate lending.
The deal covers about 90,600sq m of industrial space at Acacia Ridge, Berrinba, Richlands, Wacol and Morningside.
The facilities are leased to tenants including Volvo, O’Brien Glass, CNW and Ausdeck.
The portfolio has a weighted average lease expiry of 4.5 years, with annual rent increases averaging 3.4 per cent. Charter Hall has also identified a gap between passing rents and assessed market rents, providing potential for rental growth as leases renew.
The acquisition adds to Charter Hall’s recent buying activity in South-East Queensland. In September, the group acquired three industrial and logistics assets for $192.4 million, including facilities leased to Australia Post, automotive logistics operator PrixCar and healthcare distributor Symbion.
This latest transaction is expected to lift Charter Hall’s Queensland property funds under management to about $15 billion, while its national industrial and logistics platform is valued at $24.9 billion.
For Garda, the sale is part of a broader exit from property ownership. Together with the previously announced sales of assets at Pinkenba and Heathwood, the transaction brings gross proceeds from its nine investment properties to $350.8 million.
Garda said it plans to use the proceeds to repay its syndicated debt facility, which had $185.3 million drawn at the end of September. Once the sales are completed, it expects to have about $176.6 million in surplus cash, taking its total investable capital to approximately $321 million when existing loan receivables are included.
The group intends to prioritise real estate lending, while retaining the option to acquire or develop property when prospective returns justify the risk.
Garda has also lifted its 2026-27 financial year funds-from-operations guidance by 19 per cent to 12.5 cents per security and increased distribution guidance by 39 per cent to 12.5 cents.
The Morningside property sale, valued at $80.7 million, remains subject to due diligence, with settlement expected around March 2027. Settlements for most of the other properties are scheduled for November 2026.
