This article is from the Australian Property Journal archive
GPT has completed the bookbuild for its $376 million GPT Metro Office Fund and announced that the $255 million offer is fully underwritten.
Metro plans to list with a portfolio of six A grade metropolitan and business park properties, across Sydney, Brisbane and Melbourne valued at approximately $376 million.
The portfolio is 100% leased with a weighted average lease expiry of 6.3 years, 7.7% capitalisation rate and an average building age of 3.5 years.
The fund will have gearing of 35% and a forecast distribution yield for the period from allotment to 30 June 2015 of approximately 7.40% p.a.
GPT CEO Michael Cameron said the launch of Metro is part of the group’s strategy to increase the earnings contribution from its funds management business.
“The fund has tapped into the significant appetite in the market for quality AREIT offerings and it is pleasing to see such strong support from both institutional investors and retail brokers. The excellent response supports our decision to channel selected properties into a listed fund.
“The strong response also reflects GPT’s deep market knowledge, as well as its highly regarded funds management and property management capability, which give it a competitive advantage in this space,” Cameron said.
Meanwhile two GPT senior executives, Chris Blackmore and Anastasia Clarke, have been promoted to the roles of fund Manager and CFO of the fund respectively.
The fund will be led by independent chairman John Atkin, independent directors Justine Hickey and Paul Say as well as GPT’s head of funds management Nicholas Harris and general counsel James Coyne.
Atkin said the positive response to the fund was an endorsement of Metro’s strong asset base and attractive returns profile.
“Following the support received for the fund from institutional investors and retail brokers we look forward to welcoming many unitholders, including those GPT investors who decide to take part in the allocation available to them,” Atkin said.
Blackmore said the fund’s properties were in good performing metropolitan locations outside of the Sydney, Melbourne and Brisbane CBDs and this, along with the strong fundamentals of the assets, is expected to produce stable returns.
“The aim of Metro will be to continue to build a quality Australian metropolitan and business park office portfolio by adding, over time, properties with a stable income profile, underpinned by long term leases with structured rental growth.
“Metro will maintain a conservative capital structure with a target gearing range of between 25% to 40% and there will be no speculative development undertaken,” Blackmore said.
GPT is being advised by UBS and Allens. National Australia Bank, Morgans Financial and Ord Minnett are acting as co-lead managers.
Australian Property Journal
