GPT sells up $560m in...

GPT sells up $560m in assets
http://www.businessday.com.au/business/gpt-sells-up-560m-in-assets-20090603-bv3w.html


June 3, 2009 - 12:45PM
Real estate investment trust GPT Group has sold close to $560 million worth of assets as the group seeks to restructure its business model.

GPT says in a company update issued today that it intends to sell more of its non-core assets.

The sale would facilitate GPT's intention of refocusing its business model on the ownership, management and development of high quality retail, office and industrial assets in Australia, it said.

Shares in GPT were up four cents, or 8.33 per cent, at 52 cents.

During the March quarter, GPT sold Cradle Mountain Lodge in Tasmania, the Cannon Hill Homemaker City Centre in Queensland, and a small industrial asset in Yeerongpilly in Queensland.

"Sale proceeds of $47 million will be used to reduce GPT's debt and are further to the disposal of three non core industrial assets totalling $39 million," GPT said.

Since the end of the March quarter, GPT has agreed to sell $143 million worth of its interests across the GPT Wholesale Office Fund and the GPT Wholesale Shopping Centre Fund.

It also agreed to sell its interests in the H20 portfolio, which comprises 32 office properties in Europe, to an independent European real estate investment business for $213 million.

GPT also sold the Floreat Forum shopping centre in Perth to Australasian Property Investments for $100 million.

GPT, which recently undertook a $1.7 billion capital raising, said the asset sales and capital raising would reduce the group's debt to about $2.3 billion and balance sheet gearing to about 20 per cent on a pro forma basis.

GPT posted a net loss of $3.25 billion for calendar 2008, compared to a profit of $1.18 billion for the previous year, as the global financial crisis took its toll on property groups and eroded asset values.

AAP