Growthpoint locks in $267.7 million sale of Perth Airport Woolworths distribution centre
Growthpoint Properties Australia (ASX: GOZ) has entered an agreement to divest the Woolworths distribution centre at 20 Colquhoun Road, Perth Airport, Western Australia, to Hesperia for a gross consideration of $267.7 million. The figure applies on completion of current expansion works, and the sale continues the REIT’s disciplined capital recycling program.
The transaction forms part of Growthpoint’s focus on efficient capital management. Settlement is expected to complete in early calendar year 2027, conditional on the completion of the distribution centre expansion, Foreign Investment Review Board (FIRB) approval and other customary conditions.
The buyer, Hesperia, will acquire a leasehold asset that has sat within Growthpoint’s portfolio since 2009. The deal signals active portfolio management and a return realised after more than 15 years of ownership, setting up a clear value-creation narrative.
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A 15-year value creation story
The asset formed part of Growthpoint’s original seed portfolio acquired in 2009, valued at $101.6 million as at 30 June 2009. Over the years, the REIT has actively managed the site to expand its footprint and lift its value.
That work included an approximately 15,000 sqm expansion in 2009 and, more recently, a further 10,700 sqm expansion currently underway. The result is a headline return metric that underscores the value-add strategy.
According to Growthpoint, the divestment is expected to deliver an unlevered property internal rate of return of approximately 12%. This measures the return generated by the property itself, before the effect of any debt used to fund it.
| Metric | Detail | Investor takeaway |
|---|---|---|
| Acquisition (2009 seed portfolio) | $101.6m valuation | 2009 seed valuation |
| Expansions delivered/underway | ~15,000 sqm (2009) + 10,700 sqm (current) | Active value-add |
| Sale consideration | $267.7m gross | Realised uplift |
| Unlevered property IRR | ~12% | Return quality |
The company’s Chief Executive Officer and Managing Director, Ross Lees, framed the sale as a demonstration of its asset management approach.
Ross Lees, CEO and Managing Director, Growthpoint Properties Australia
“This transaction demonstrates the value we create through active asset management.
“After more than 15 years of value creation, now is the appropriate time to recycle capital from this asset, as this divestment is expected to deliver an unlevered property internal rate of return of approximately 12%.”
What capital recycling means for the balance sheet
A capital recycling program involves selling assets and redeploying the proceeds to support efficient capital management and lower gearing. For a real estate investment trust (REIT), this is a way to keep the portfolio productive without simply adding more debt.
Gearing refers to the proportion of a company’s assets funded by borrowings rather than equity. Lower gearing generally improves financial flexibility, giving a business more capacity to take on debt for future opportunities and greater resilience if conditions tighten.
On this transaction, net proceeds on settlement would lower pro forma gearing by approximately 4%. A REIT reducing gearing improves its ability to withstand market pressure and preserves capacity for future acquisitions.
GOZ office leasing activity in FY26 has run alongside the capital recycling program, with Growthpoint executing 54,721 sqm of directly held office leases and refinancing $495 million of debt since December 2025, reflecting a REIT managing both sides of its balance sheet simultaneously.
The key deal mechanics are as follows:
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Buyer: Hesperia
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Structure: leasehold asset
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Proceeds impact: pro forma gearing down approximately 4%
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Return: approximately 12% unlevered property IRR
The sale ties an individual asset disposal to Growthpoint’s broader thesis of disciplined, returns-focused capital management.
Settlement conditions and what comes next
The transaction is not yet complete. Settlement remains conditional, and the path to completion involves several steps.
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Completion of the distribution centre expansion project currently underway
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Foreign Investment Review Board (FIRB) approval
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Other customary conditions
The transaction is expected to complete in early calendar year 2027.
Growthpoint is an internally managed REIT and part of the S&P/ASX 300, with Moody’s having assigned a Baa2 domestic backed senior secured bank credit facility rating. The company achieved its Net Zero Target by 1 July 2025 across its directly owned operationally controlled office assets and corporate activities.
The divestment sharpens Growthpoint’s portfolio and frees capital, positioning the REIT to lower gearing after realising value from a long-held asset.
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