SYDNEY: Garda Property Group has agreed to sell its seven remaining investment properties to a fund managed by Charter Hall for A$300 million ($195 million), completing its exit from direct property ownership as it shifts capital toward real estate lending.

The sale follows Garda’s previously announced dispositions of its Heathwood and Pinkenba properties for A$50.8 million on Sept. 28 and 29. Together, the nine transactions total A$350.8 million in gross proceeds, the Brisbane-based real estate investment trust said in a statement dated Oct. 21.

Settlement of all nine properties is expected between November 2026 and March 2027. The Morningside property, the largest single asset in the portfolio at A$80.7 million, is subject to due diligence with settlement expected around March 2027; all other transactions are unconditional.

Garda said proceeds will repay in full its syndicated debt facility, currently drawn to A$185.3 million, leaving about A$176.6 million in surplus cash. Combined with A$144.4 million in existing loan receivables, the company will have roughly A$321 million of investable capital.

The sale price represents a nominal 1.4% discount to the portfolio’s A$355.9 million carrying value. Garda noted its securities traded at A$1.025 on Oct. 20, a 38% discount to net tangible assets of A$1.56 per security.

“The Transactions represent an exit from asset ownership, at a nominal discount to carrying value and NTA, at a time when Garda and the REIT sector generally are trading at material discounts,” Executive Chairman Matthew Madsen said.

“These decisive Transactions monetise the value of our property portfolio, repay all Group debt and result in an ungeared balance-sheet holding substantial cash for future investment.”

Garda said it expects real estate lending to be its primary deployment focus over the medium term, though it retains the capability to own or develop property where returns exceed risk and cost-of-capital hurdles. The company said narrowing spreads between industrial property capitalization rates, government bond yields and funding costs have increased asset valuation risks.

Garda upgraded its fiscal 2027 guidance, raising funds from operations to 12.5 cents per security from 10.5 cents, a 19% increase, and distribution guidance to 12.5 cents per security from 9.0 cents, a 39% increase. The company said it intends to distribute substantially all of its FFO, targeting a payout ratio of about 100%, because distributions will no longer include tax-advantaged income from property depreciation benefits.

The transactions constitute a significant change to the scale of Garda’s activities under ASX Listing Rule 11.1. Garda said it received in-principle advice from the exchange that the deals do not require securityholder approval.

On a pro forma basis, Garda’s total consolidated assets would fall 32.9% to A$336 million from A$500.6 million, and annual revenue would decline 57.3% to A$20.9 million from A$49 million, according to figures based on the company’s audited June 30, 2026, accounts. Annual profit before tax would fall 67.5% to A$7.9 million from A$24.5 million. Total equity interests would decline 1% to A$326.7 million.

The company’s securities on issue, at 217,573,022, would be unchanged.