Port Central Shopping Centre
STRATEGIC RATIONALE FOR INVESTMENT
Gowings has been seeking to acquire a high yielding asset whose cashflows are reliable and stable.
With the Australian economy and unemployment remaining highly resilent, we believe it is an ideal time in the cycle to acquire prime retail property at attractive prices.
Post acquisition, our property portfolio will represent 25% of our total portfolio (net of debt) including listed equities, managed private equity and cash.
This increased weighting of property will provide the benefits of diversification to our income streams and expected longer term capital growth.
Over the longer term, Gowings’ property expertise may be used to create opportunities for capital growth.
The strong passing cash flow will support Gowings’ current level of ordinary dividends (10 cents per share).
The net rent is tax assisted by significant depreciation allowances.