GPT successfully raises $800M for Sydney purchases

GPT successfully raises $800M for Sydney purchases

Investors are showing bullish signs on property in the Sydney CBD, with GPT Group (ASX: GPT) raising $800 million in 24 hours to acquire stakes in commercial and retail sites in the city centre.

Yesterday the company announced it would issue approximately 131.8 million stapled securities at the placement price of $6.07, representing a 3.9 per cent discount on the previous close.

The funding will go towards acquiring a 25 per cent stake in the Darling Park 1 & 2 office complexes and the Cockle Bay Wharf dining and retail precinct.

Today GPT announced the placement was well supported by both existing institutional securityholders and new investors

"We believe the acquisition of a 25% interest in Darling Park 1 & 2 and Cockle Bay Wharf represents a compelling opportunity for GPT," says CEO Bob Johnston.

"Importantly, proceeds of the Placement will also support the next phase of growth while maintaining a very strong balance sheet position."

Despite the positive news, shares in the group were down 1.9 per cent at $6.21 at the time of writing. 

This development pipeline includes a $33 million facility at Truganina in Melbourne and a $44 million asset at Wembley Business Park in Brisbane.

The Darling Park and Cockle Bay Wharf is the latest high-profile move for GPT, following its $212 million portfolio buyout of logistics assets in Sydney and its $266 million office development at 32 Smith Street in Paramatta.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...