This article is from the Australian Property Journal archive
THE opportunity to carve up GPT’s prized retail assets has come and gone, Stockland’s managing director Matthew Quinn admitted.
The admission comes after Stockland decided to sell its 13.1% interest back to GPT through a book build at a price of $2.75 per security.
Stockland’s 243 million GPT securities were purchased in November 2008 at an average entry price of $3.60.
The sale back to GPT meant Stockland made a loss of $200 million.
Quinn said Stockland made the move on GPT when the group was in a weak financial position and undergoing significant board and management change, including the resignation of its CEO Nic Lyons, who was instrumental in the separation with Lend Lease and GPT forming a joint venture with Babcock & Brown.
Quinn said there was potential to use the stake to acquire GPT’s quality retail assets.
However, he admitted that the opportunity to make that move has slipped away.
Following the board renewal, GPT exited from its joint venture with Babcock & Brown, including the sale of its €3 billion European funds and asset management company, GPT Halverton, for a meagre €2 Euros.
GPT paid around $100 million for Halverton Real Estate Investment Management in July 2007, which at the time had €1.3 billion of assets under management.
“Since we acquired the stake, GPT has restructured its balance sheet, strengthened its board and management and there is now little prospect of acquiring assets.
“It is therefore in the best interests of our securityholders to exit our position and focus on other growth opportunities,” he continued.
“I am disappointed and regret the loss suffered by our securityholders.
“We are committed to building securityholder value through our 3-R strategy, focusing on our core strengths of Residential Communities, Retirement Living and Retail development,” Quinn concluded.
Australian Property Journal