$218.6m retail asset sale settles, with REP’s gearing expected to reduce to 16.8%
RAM Essential Services Property Fund (ASX:REP) confirms that settlement of the five retail assets contracted for sale occurred today, 22 October 2026. This completes the $218.6m transaction.
Following settlement of all five assets, the Fund’s gearing is expected to reduce to 16.8% on a pro forma basis.
The assets that settled are:
- Coomera Square
- Springfield Fair
- Keppel Bay Plaza
- Coles Rutherford
- Mowbray Marketplace
The update follows the Fund’s ASX announcement dated 18 August 2026 and its FY26 Annual Report. With settlement complete, the divestment is no longer pending, which removes the completion step from the transaction.
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Net proceeds repay debt as REP retains 10% interest
Net proceeds from the sale are being applied to repay debt. The announcement does not state the amount of debt being repaid.
Deal terms at a glance
| Item | Detail |
|---|---|
| Transaction value | $218.6m |
| Assets sold | 5 |
| Retained interest | 10% in the newly established institutional trust |
| Use of proceeds | Debt repayment |
| Pro forma gearing (expected) | 16.8% |
Why the 10% retained interest matters
The Fund is retaining a 10% interest in the newly established institutional trust acquiring the five retail assets, as previously announced. This means the Fund keeps an interest in the assets through the trust, rather than owning them directly.
The announcement does not detail returns or fees associated with the retained interest.
What a specialised REIT and healthcare pivot means for investors
A real estate investment trust (REIT) owns property and distributes income to investors. A specialised REIT focuses on one sector rather than holding a mixed portfolio.
Gearing measures debt relative to assets. Lower gearing means less debt against the asset base, which typically gives a balance sheet more flexibility.
The settlement ties directly to the Board’s previously announced strategy of “moving to a specialised REIT” and the “pivot to healthcare”. REP is a stapled real estate investment trust with a geographically diversified portfolio weighted predominantly towards healthcare real estate. Its tenants include leading private hospital and healthcare operators, complemented by essential retail assets anchored by national supermarket tenants.
The FY26 results set out how the pivot to healthcare reshapes the portfolio, with the weighted average lease expiry extending to 8.1 years and healthcare income rising 21% once the retail assets are removed.
George Websdale, RAM Executive Director and Head of Real Estate
“The completion on the retail selldown is in line with the Board’s previously announced strategy of moving to a specialised REIT and has placed the Fund in a strong position as we continue the pivot to healthcare…”
Refinancing and capital management: what comes next
The announcement points to the following next steps:
- The Fund is finalising a refinancing of its debt.
- Details on the first stage of the proposed capital management strategy will be provided shortly.
- The Board continues to assess capital management and other strategic initiatives aimed at reducing the trading discount to NTA and maximising securityholder value.
- UBS Securities Australia Limited has been appointed to advise the Board in relation to these initiatives.
The near-term items to watch are the refinancing and the details of the proposed capital management strategy. The announcement does not indicate their outcomes, and states that details on the first stage of the proposed capital management strategy will be provided shortly.
The announcement was authorised by the Board of RAM Property Funds Management Limited, the Responsible Entity of the Fund. Further detail on the first stage of the proposed capital management strategy is expected to follow shortly.
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