GPT yet to strike deal to buy Besen family's Highpoint stake
GPT Group is yet to strike a deal with its co-owner of Melbourne’s Highpoint shopping centre, the Besen family, which is looking to divest its $500 million stake in the mall.
GPT controls 75 per cent, worth around $1.6 billion, of the shopping centre in Melbourne’s west, through its balance sheet and a larger stake held within its unlisted shopping centre fund.
The wealthy Besen family announced this month it would sell down its 25 per cent stake in Highpoint, which could be worth more than $500 million.
GPT has steadily increased its ownership of the sprawling 153,000-square-metre mall, since buying a half stake in 2006.
In a quarterly business update on Thursday, the listed fund manager and property investor noted its pre-emptive rights over the Besen family’s Highpoint Property Group’s interest in the mall.
That stake is yet to be formally offered to its co-owners GPT, which owns a 16.7 per cent share and the GPT Wholesale Shopping Centre Fund, which owns 58.3 per cent, it said.
GPT has steadily increased its ownership of the sprawling 153,000-square-metre mall, since buying a half stake in 2006. Photo: Paul Jeffers
“A decision on whether to exercise these pre-emptive rights will be made once the final price and terms are determined by HPG,” it said.
CBD office markets
Across its retail portfolio, GPT booked specialty sales growth of 2.4 per cent. Its unlisted malls fund revalued eight properties during the quarter, booking a $40.1 million gain in the portfolio.
The unlisted fund also owns 50 per cent of the Macarthur Square mall, where a $240 million expansion was completed in the March quarter.
Overall, managing director Bob Johnston said the diversified group was on track to deliver its full-year guidance. It expects funds from operation per security growth of around 2 per cent for 2017 and a 5 per cent increase in distribution.
“The group continues to benefit from the strong conditions in the Sydney and Melbourne CBD office markets, while sales productivity in our retail portfolio increased to $11,072 per square metre,” Mr Johnston said in the March update.
“During the quarter, GPT has also made good progress advancing several developments across its retail, office and logistics portfolios.”
GPT’s 2017 financial year is the calendar year.
Occupancy in its office portfolio is 96.7 per cent, with a total of 39,400 square metres of new leases and renewals agreed during the March quarter.
Its wholesale office fund revalued nine assets during the quarter, booking a $123.1 million gain. The unlisted fund’s average capitalisation rate tightened 13 basis points to 5.42 per cent.
As revealed this week, GPT is steadily expanding its exposure in western Sydney’s industrial market, most recently with the completion of an 18,000-square-metre logistics facility at Abbott Road in Seven Hills.
