GPT Group increases exposure to malls with $116m investment
Fund manager GPT Group has increased its exposure in its $3.8 billion unlisted shopping centres fund after concluding a redemption window for its institutional investors.
Through the withdrawal process – known as a liquidity event – the malls fund took requests for 2.4 per cent of its issued capital.
Those securities were then offered to the fund’s existing investors, which include its manager, the listed GPT.
As well, a separate offer of a large tranche of securities was made by an existing investor through the fund’s secondary trading process.
As a result, GPT bought up an extra $116.6 million investment in the wholesale fund as its stake rose from 25.3 per cent to 28.9 per cent.
“GPT was pleased to receive the strong support from investors for the revised fund terms and the opportunity to acquire further units in a high-quality portfolio of retail assets,” managing director Bob Johnston said.
The increased stake comes on top of the $157 million that GPT outlaid last September, pushing its interest from 20.2 per cent to 25.3 per cent.
“The fund owns a number of significant and strong-performing regional shopping centres, such as Highpoint Shopping Centre and Macarthur Square, and a number of its assets have future expansion opportunities that we expect will enhance fund returns,” Mr Johnston said at the time.
The unlisted shopping centre fund booked a total return of 10.2 per cent over the 12 months to March 31. GPT’s wholesale office fund achieved a 12.2 per cent internal rate of return over the same period.
GPT, together with its malls fund, is now contemplating a deal to take out the remaining 25 per cent stake, worth around $500 million, that its co-owner the Besen family holds in Melbourne’s Highpoint shopping centre.
