Australian GPT to sell 50% stake in Sydney office

Australian property firm GPT has announced plans to sell its 50% stake in the MLC Centre in Sydney to reinvest into developments across the country.

The 67-level tower comprises 66,829 sq.m. of office and 6,013 sq.m. of retail in the heart of the city’s commercial, financial and legal districts.

“The Sydney CBD office market has experienced significant rental growth and cap rate compression over the past five years, and the group’s successful repositioning of the asset has generated exceptional returns for GPT,” GPT CEO Bob Johnston said in a company announcement.

The company’s share of the asset was valued at A$726.3m, as of June 2018.

GPT, which has A$22.7bn of assets under management, said it had upgraded the food court and enhanced the building’s income profile through an extensive re-leasing program under its ownership.

The group intends to deploy the sale proceeds into its project pipeline, including a new office tower at 32 Smith Street in the Sydney suburb of Parramatta and a planned office tower at Melbourne Central.

It is also on the hunt for new logistics development opportunities.

The sale would lower GPT’s exposure to the Sydney office to 60% from 65% and increase its weighting towards Melbourne from 30% to 34%.

GPT is listed on the Australian stock exchange and owns and manages offices, warehouses, business parks and shopping centres across Australia.

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