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GDI Property Group (ASX: GDI) may be listed in Sydney, but Perth is the future as far as its latest investments are concerned.
The company has entered into a call option to acquire a $98 million portfolio of 17 properties in the Western Australian capital, to be funded through the establishment of a new unlisted trust.
The properties are fully leased for around 11 years and are occupied by hihg-profile car dealerships and service centres located on major arterial roads.
GDI's latest move follows a continued shift towards Western Australia, where the group is optimistic about high population growth and gross state product (GSP) forecasts well above the national average through to 2028.
Since 2017 it has sold five properties in Brisbane, Adelaide in Sydney since 2017 to help fund the acquisition of Westralia Square, while in the WA capital it also owns Mill Green and the city's only IKEA store.
The company has also exchanged a conditional contract to acquire 180 Hay Street, Perth, which will be 100 per cent vacant on settlement
GDI plans to launch a $76 million public raising for the new GDI No. 46 Property Trust next week, with settlement on the acquisition expected around 17 January 2020.
"With high underlying land value underpinning the Portfolio's value, CPI + 1% rental increases, a long WALE and market leading car dealerships housing names such as Toyota, Volkswagen, Nissan, Hyundai and Kia, GDI is very pleased to be in a position to acquire the Portfolio," says GDI managing director Steve Gillard.
"We believe the new fund that will acquire the Portfolio will be highly sought after by our high net worth and sophisticated investors and we look forward to launching the offering next week."
GDI shares were up 1.76% to $1.557 at 11:30am AEDT.
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