Botanicca 3 in Melbourne.

Growthpoint secures $100m debt for future projects

Carolyn Cummins|May 22, 2020

Growthpoint Australia has secured a new $100 million debt facility to shore up its finances for future growth opportunities.

In a two-tranche deal with a new banking partner, the group has secured debt for five and seven years at pricing levels lower than its weighted average cost of debt.

The group now has $345 million of undrawn debt lines and $42 million of cash on its balance sheet. Growthpoint’s weighted average debt maturity has increased to 4.6 years and there is no debt maturing until the 2022 financial year.

Growthpoint is the owner and developer of several major office, industrial and retail assets across the country, including the $450 million 1 Charles Street, Parramatta, Sydney, and has achieved practical completion on the vacant Botanicca 3, an A-grade office building in Melbourne’s Richmond.

Dion Andrews, Growthpoint’s chief financial officer said the group was “pleased” to establish a relationship with a new banking partner, particularly during these uncertain times, and on favourable terms, highlighting the strength of its financial position.

“These facilities add diversity in both lender and tenor to our debt book and provide Growthpoint with additional financial flexibility now and into the future,”Mr Andrews said.