National

Growthpoint Sells Perth Woolworths Asset for A$267.7 Million to Cut Debt

Shivangi

Aug 12, 2026 2:25 PM IST

Category National

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Synopsis

The sale of the Perth Airport distribution centre is expected to reduce Growthpoint's pro forma gearing by around four percentage points, as the property group steps up capital recycling.

Key Highlights

• Growthpoint Properties Australia has agreed to sell its Woolworths distribution centre at Perth Airport for $267.7 million. 
• Growthpoint originally bought the property for $101.6 million in 2009.
• The transaction is expected to lower pro forma gearing by around 4%.
• Settlement is expected in early 2027, subject to the completion of the expansion and FIRB approval.

Growthpoint Properties Australia agreed to sell its property at 20 Colquhoun Road in the airport for $267.7 million. The site, which operates as a Woolworths distribution centre, was acquired by Growthpoint for $101.6 million in 2009. Two expansions, covering roughly 10,700 square meters and 15,000 square meters have been completed at the property.

The sale is expected to bring Growthpoint’s pro forma gearing down by approximately 4%. The transaction is targeting an unlevered property internal rate of return of around 12%.

Sale Part of Capital Recycling

Growthpoint said the disposal forms part of its broader capital recycling strategy and comes after more than 15 years of value creation at the property.

Chief Executive Officer and Managing Director Ross Lees said the deal demonstrated the value generated through active asset management. He added that Growthpoint believed it was the appropriate time to recycle capital from the property.

Settlement with Hesperia is expected in early 2027, subject to the completion of the current expansion at the distribution centre, FIRB approval and other customary conditions.

Growthpoint intends to use the proceeds to strengthen its balance sheet, lower leverage and pursue new opportunities across its property portfolio.

Source: Motley Fools