GARDA Property Group sells asset for $17.5M

• GARDA Property Group entered a contract to sell an industrial property in Heathwood for $17.5 million, representing a 6.7% premium to its valuation.
• Net sale proceeds will reduce the company's drawn debt from $17.2 million to $158.8 million, lowering gearing to 29%.
• The transaction forms part of GARDA's broader debt-reduction strategy following recent asset sales.

GARDA Property Group (ASX:GDF) has contracted to sell its industrial property at 67 Noosa Street, Heathwood, for $17.5 million to reduce company debt.

The contract is conditional only on finance, with the purchaser, The Landrich Trust, given until Oct. 12 to confirm funding before settlement on or before Nov. 20.

Following settlement, net proceeds will cut drawn debt to $158.8 million and increase net tangible assets to $1.65 per security.

Following the announcement, the GARDA Property Group share price was unchanged at $1.04.

Combined with the earlier sale of its Pinkenba property, total debt reductions will reach $50.1 million.

This total debt cut will leave drawn debt at $125.9 million, bringing overall hearing down to $1.64 per security.