hedge position, page-5

The AFR MarketWrap covered this issue today claiming that GPT had taken another step towards simplifying its business by removing unnecessary hedges as it focuses on its Australian held assets. GPT unwound $1.2BN of offshore interest rate hedges at a cost of $152MN.Terminating the hedges will cut GPT's average interest rate by 1.2%.GPT also terminated foreign income hedges at a cost of $24MN. The strong Australian dollar allowed GPT to unwind the hedges at a much lower cost than previously possible. The article finished with a reference to the above action clearing the way for acquisitions but didn't elaborate any further.