This article is from the Australian Property Journal archive
GPT Group is standing ready and on the cusp of taking total control over one of the southern hemisphere’s major malls.
The group said in its quarterly market update that it is yet to be formally offered the remaining 25% interest in the Highpoint shopping centre held by co-owners the Besen family, who recently announced it would be selling off its share worth approximately $500 million.
GPT currently owns 75% of the shopping centre in Melbourne’s west via a 16.7% share and a 58.3% interest via its GPT Wholesale Shopping Centre Fund (GWSCF), with an estimated total worth of circa $1.6 billion.
GPT made sure to remind the market of its pre-emptive rights over the Besen family’s interest.
“A decision on whether to exercise these pre-emptive rights will be made once the final price and terms are determined by Highpoint Property Group,” it said.
GPT announced retail specialty sales growth of 2.4% over the 12 months to the end of the quarter, and total centre MAT growth at 3.2% to more than $2.585 billion. Specialty retail sales was at $11,072 per sqm.
The GWSCF had its portfolio value jump by $40.1 million in the quarter following the revaluation of eight assets. Its weighted average capitalisation rate tightened by 4bps to 5.42%.
The Macarthur Square shopping centre in Sydney’s south-west, owned by GPT and GWSCF via half-stakes, saw completion of its $240 million expansion from 94,300sqm of GLA to 107,000sqm.
GPT’s investment portfolio occupancy was at 97.7%.It remains on track to achieve FFO per security growth of around 2% cent for the financial year, and distribution per security growth of around 5%.
Chief executive officer and managing director Bob Johnston said GPT continued to benefit from the strong conditions in the Sydney and Melbourne CBD office markets, with 39,400sqm signed or at the heads of agreement stage in the quarter.
Key deals included 7,260sqm leased by Allianz and 1,470sqm by Wilson Park in respectively at the Melbourne Central Tower, and 3,600sqm across two deals within its Citigroup Centre in Sydney.
Construction began on the 15,700sqm A-grade office building at 4 Murray Rose Avenue, Sydney Olympic, and settlement was reached on its $31.2 million acquisition of a 2,439sqm Parramatta CBD site on the corner of Smith Street and Phillip Street, which will eventually comprise a 26,000sqm prime office tower.
The GPT Wholesale Office Fund saw a $123.1 million portfolio value uplift following the revaluation of nine assets, and a WACR firming of 13bps to 5.42%.
The fund delivered a total return of 12.0% of the 12 month period, and GWSCF 10.2%.
GPT completed its 18,000sqm logistics facility in Sydney’s Seven Hills, with a 9,000sqm lease signed to a tenant on a seven-year term. A heads of agreement was signed over a 21,000sqm facility over a decade-long term at its recently acquired seven-hectare Huntingwood Drive site.
Australian Property Journal
