Growthpoint agrees to $181m partnership with TPG Angelo Gordon
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The news: Real estate investor Growthpoint Properties Australia has announced the formation of the Growthpoint Australia Logistics Partnership (GALP), in partnership with TPG Angelo Gordon, a credit and real estate investing platform within Nasdaq-listed TPG.
The numbers: As part of the agreement, Texan private equity firm TPG will acquire an 80% interest in a portfolio of six existing Growthpoint industrial assets across Victoria, Queensland and New South Wales. Growthpoint entities will hold the remaining 20% interest and will be the investment and property manager.
Melbourne-based REIT Growthpoint said it will receive net sale proceeds of $181 million, which will be used to repay debt and reduce gearing by 2% to 38.7%.
The company expects to pay a one-off special distribution of 2.1 cents per share to aid payment of the tax associated with the capital gain.
The context: Growthpoint said the partnership will focus on growing in the logistics sector in Australia. The settlement of the transaction is expected to complete around December, subject to Foreign Investment Review Board approval. Growthpoint noted there will be no change to its FY25 funds from operations guidance.
In a separate transaction overnight, TPG agreed to buy the 70% stake in DirecTV it doesn't already own from AT&T for USD7.6 billion ($11 billion), paving the way for a merger between DirecTV and EchoStar's video distribution businesses Dish Network and Sling TV to create the largest US pay-TV provider.
What they said: "We are pleased to form this capital partnership alongside an aligned global institutional partner with extensive investment experience," Growthpoint CEO and managing director Ross Lees said.
"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."
The source: ASX announcement
