GDI Property Group (ASX: GDI) has entered in to a call option to acquire a $98.0 million portfolio of 17 metropolitan Perth properties occupied by high profile car dealerships and service centres located on major arterial roads.
- The Portfolio is fully leased for approximately 11 years, with the tenant having 5 x 5-year options.
- The leases have annual CPI + 1% rental increases, with market reviews in 2023 and 2028.
- The company intends to fund the acquisition through the establishment of a new unlisted unregistered managed investment scheme, GDI No. 46 Property Trust.
- GDI forecast to have a commencing distribution yield of 7.75% p.a, with conservative gearing of 31%.
- The acquisition settlement to take place around 17 January 2020.
- GDI Property is expected to launch approximately $76 million public raising for the Trust.
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