Growthpoint sells stake in Dexus Industria REIT for $131.7m
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The news: Real estate investor Growthpoint has sold its entire holding in Dexus Industria REIT for $131.7 million to support debt repayments.
The numbers: Growthpoint's holding, representing around 15% of Dexus Industria REIT shares, was sold at a price of $2.75 per share, a discount to its last closing price of $2.86.
Following the sale of the stake and the settlement of its Growthpoint Australia Logistics Partnership (GALP) announced on Tuesday, Growthpoint anticipates gearing to reduce by 3.8% to 36.9%, at the lower end of its target gearing range of 35% to 45%.
The context: The move from Growthpoint comes a day after it announced the formation of GALP, in partnership with Nasdaq-listed TPG's credit and real estate investing platform TPG Angelo Gordon.
What they said: "The investment in [Dexus] was no longer considered a core strategic investment and now is the appropriate time to realise the value in this investment," Growthpoint CEO and managing director Ross Lees said.
"Proceeds of the sale will initially be applied to the repayment of debt demonstrating our commitment to active management of the Growthpoint balance sheet."
The source: ASX announcement
