GPT Group (ASX: GPT) has sold its 25 per cent interest in 1 Farrer Place, Sydney to a Lendlease (ASX: LLC) managed fund for $584.6 million.
According to GPT the asset has delivered a return in excess of 12 per cent per annum over the past five years, with the sale price to Australian Prime Property Fund Commercial struck at the 30 June book value.
"The sale of Farrer Place capitalises on the strong demand and rare opportunity to purchase landmark office assets," said GPT CEO Bob Johnston.
"The proceeds from the sale will be reinvested into new opportunities including logistics acquisitions and the group's development pipeline, which we believe will generate superior long term returns for investors."
The transaction is expected to settle by mid-December.
The sale comes after GPT exchanged contracts for the purchase of three prime logistics properties and 2.35 hectares of adjoining development land at Drystone Industrial Estate, Truganina.
The total price of the acquisitions is $127.6 million, and settlement is expected to be completed by mid-December.
GPT has also recently commenced the speculative development of a 16,270 square metre warehouse at Berrinba in Brisbane, with completion scheduled for the second half of 2021 and an expected end valuation of $33 million.
"These investments are consistent with GPT's strategy to grow our exposure to the logistics sector, and complement our significant logistics development pipeline which has an expected end value of approximately $1 billion," Johnston said.
"The properties are well located, with long leases and good access to transport links, and we expect these assets will benefit from sustained demand from occupiers."
Shares in GPT are down 1.27 per cent to $4.66 per share at 10.08am AEDT.
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