Garda Property Group (ASX:GDF) said an associate of Cypress Tyres has entered into a contract, conditional only on finance, to acquire an industrial property in Heathwood for AU$17.5 million, at a 6.7% premium to its independent valuation, according to a Tuesday Australian bourse filing.

The company said the purchaser has until Oct. 12 to confirm finance, triggering settlement on or before Nov. 20, with net sale proceeds to be used to reduce drawn debt.

Following the Heathwood sale, Garda's drawn debt reduces by about AU$17.2 million to AU$158.8 million, representing gearing of 29%, with net tangible assets per security increasing to AU$1.65, the filing added.

Following the sale of both the Heathwood and Pinkenba properties, Garda's drawn debt reduces by about AU$50.1 million in total to AU$125.9 million, representing gearing of 23.8%, with net tangible assets per security returning to AU$1.64, it added.

The company's shares rose 4% in recent Tuesday trade.