LDR Capital Property Fund (ASX:LED) Sells Two Queensland Offices to Pay Down Debt

Aditi Sarkar

23 October 2026 09:53 PM AEDT

LDR Capital Property Fund (ASX:LED) Sells Two Queensland Offices to Pay Down Debt

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Highlights

• LDR Capital Property Fund exchanged contracts to sell Limestone Centre and Nexus Centre in Queensland for a combined $65.5 million.

• The fund expects net proceeds of $57.6 million after adjustments and costs, applied initially to repay debt.

• Pro forma December 2025 gearing would fall to 30.1 per cent if the transaction completes as planned.

• The sale follows a separate contract to sell 34 Corporate Drive in Cannon Hill for $24.8 million.

Two Queensland office buildings, a stack of debt and a manager intent on reshaping the portfolio: that is the setup behind the latest move by LDR Capital Property Fund (ASX:LED). The externally managed office-focused real estate investment trust said on 6 July 2026 that it had exchanged contracts to sell Limestone Centre in Ipswich and Nexus Centre in Upper Mt Gravatt. Units were trading at A$0.375 on 23 October 2026, up 2.74%.

The Deal in Numbers

The two assets carry a combined gross sale price of $65.5 million. The buyer is Stadia Capital, acting for a private investor. The price averages a 6.0 per cent discount to the assets' book values at 31 December 2025.

After adjustments and transaction costs, the fund estimates net sale proceeds of $57.6 million. It plans to apply that money initially to repay debt. Settlement is expected in late August 2026, subject to conditions that include the seller arranging the assignment, novation or replacement of selected contracts.

Two Grade C Assets

Limestone Centre in Ipswich has 7,051 square metres of net lettable area and was 94.7 per cent occupied. Nexus Centre in Upper Mt Gravatt offers 7,272 square metres and was 98.0 per cent occupied. Both are classified as Grade C.

Balance Sheet Is the Target

The sale is designed to strengthen the balance sheet. If the transaction completes, the fund said pro forma gearing at December 2025 would fall to 30.1 per cent. That figure is adjusted for the manager termination fee disclosed in the first-half FY26 results presentation, and gearing is measured as drawn debt less cash, divided by total assets less cash.

The sale builds on an earlier contract to sell 34 Corporate Drive in Cannon Hill for $24.8 million. On completion of both transactions, the fund will have exited three secondary assets in total.

Strategy and What Follows

Chairman of LDR Capital Paul Lederer said reshaping the portfolio remains critical to the fund's future success. The manager described the sales as consistent with its asset recycling strategy and said the fund continues to look for further opportunities. LDR Capital was established in 2025 to manage real estate assets for the Lederer Group and other like-minded investors, and it currently manages about $1.6 billion of real estate.

The next milestones are the settlements, which the fund expects in late August 2026 for the Queensland assets, and the use of proceeds to reduce debt.

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