Aspen Group has sold its Gardentown Shopping Centre in Toowoomba to Queensland Investment Corporation for $30 million.
The company said the sale was a positive result during difficult market environment
"The sale price of $30 million, which reflects Aspens current book value for the property, was achieved on a passing income yield of 5.50 per cent and an estimated reversionary yield of 7.40 per cent," the company said in a statement,
Gardentown is a circa 12,000 square metre retail centre.
"The asset was in the planning process for a significant redevelopment," Aspen said.
"However, given Gardentown's current trading and income performance, its short lease expiry profile and the softening retail outlook, the asset represented some income risk for Aspen in the medium term."
Aspen managing director Angelo Del Borrello the sale enabled the group to remove all retail exposure from its balance sheet.
Proceeds from the sale will be applied to debt reduction and, following settlement, gearing will be reduce by two per cent to 35 per cent.
The company's shares opened the day half a cent lower at 43.5 cents.
