GPT Fund undertakes equity raising April 12, 2010 - 12:09PM .AAP
Property company GPT Group (GPT) says it will seek to raise $400 million in a capital raising through its unlisted GPT Wholesale Office Fund.
Proceeds from the raising will be used to retire debt and to strengthen the fund's balance sheet, GPT said in a statement on Monday.
GPT said the current equity raising provided an opportunity for investors to increase their exposure to quality core Australian real estate at an attractive point in the valuation cycle.
The fund holds interests in 15 assets with a total value of around $2.9 billion.
At March 31, the fund had gearing of about 22 per cent and more than $250 million in undrawn facilities, GPT said.
GPT chief executive officer Michael Cameron said the company saw it as a good time to raise equity given current stabilisation of real estate pricing and the demand from investors for quality Australian office assets.
National Australia Bank's Property Equity and Advisory Division is advising the Fund on the raising.
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