GPT successfully raises $800M for Sydney purchases

Written on the 20 June 2019 by Business News Australia

GPT successfully raises $800M for Sydney purchases

Investors are showing bullish signs on property in the Sydney CBD, with GPT Group (ASX: GPT) raising $800 million in 24 hours to acquire stakes in commercial and retail sites in the city centre.

Yesterday the company announced it would issue approximately 131.8 million stapled securities at the placement price of $6.07, representing a 3.9 per cent discount on the previous close.

The funding will go towards acquiring a 25 per cent stake in the Darling Park 1 & 2 office complexes and the Cockle Bay Wharf dining and retail precinct.

Today GPT announced the placement was well supported by both existing institutional securityholders and new investors

"We believe the acquisition of a 25% interest in Darling Park 1 & 2 and Cockle Bay Wharf represents a compelling opportunity for GPT," says CEO Bob Johnston.

"Importantly, proceeds of the Placement will also support the next phase of growth while maintaining a very strong balance sheet position."

Despite the positive news, shares in the group were down 1.9 per cent at $6.21 at the time of writing. 

This development pipeline includes a $33 million facility at Truganina in Melbourne and a $44 million asset at Wembley Business Park in Brisbane.

The Darling Park and Cockle Bay Wharf is the latest high-profile move for GPT, following its $212 million portfolio buyout of logistics assets in Sydney and its $266 million office development at 32 Smith Street in Paramatta.

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Business News Australia

 
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