Engineering firm UGL will sell a portfolio of seven properties to newly floated fund manager GDI property for $66.5 million

Engineering firm UGL will sell a seven-asset property portfolio to newly floated fund manager GDI Property for $66.5 million.

GDI said it had reached a deal to acquire six industrial properties and one office property in NSW Queensland and Western Australia on a sale and lease-back basis.

The group plans to form a new unlisted and unregistered property trust which will be launched in coming weeks.

It will be pitched at wholesale and sophisticated investors, but it will not be available to retail clients.

GDI managing director Steve Gillard said the acquisition was consistent with the group’s investment strategy of acquiring well located properties with multiple exit options.

GDI will look to raise $43.5 million over the next month.

The group added that it is also looking at redevelopment options for its Sydney office on Castlereagh Street.

It comes after UGL issued a statement to the Australian Securities Exchange saying it was considering offers from potential bidders for its property business.

The ASX queried why UGL’s share price had fallen from a high of $7.60 since last Thursday.

The stock shed another 74 cents, or 9.7 per cent, to close at $6.86 on Monday.