GPT Wholesale Office Fund to raise $400m
April 12, 2010
GPT Group (GPT) announced an equity raising of about $400 million for the GPT Wholesale Office Fund. The group said it sees this as the right time to raise equity given the stabilisation of real estate pricing and the current demand levels from investors for quality Australian office assets.
Head of Wholesale for GPT, Nicholas Harris, said the capital raising would strengthen the Fund’s balance sheet and increase its capacity to capitalise on future opportunities at a cyclical low point in the cycle.
“This is a unique opportunity for investors to participate in a new equity raising in the highest quality office fund in the country,” Mr Harris said.
”We see this raising as offering an attractive opportunity for our existing, and potentially new investors to acquire an interest in the Fund at the current Net Asset Value.”
GPT said the proceeds from the raising would be used to retire debt and strengthen the Fund’s balance sheet, in line with the Fund’s capital management objectives.
The group said as at 31 March 2010 GWOF had gearing of approximately 22% and more than $250 million in undrawn facilities.
As at 1325 AEDT, GPT shares were up 0.5c to 58.5c.
Head of Wholesale for GPT, Nicholas Harris, said the capital raising would strengthen the Fund’s balance sheet and increase its capacity to capitalise on future opportunities at a cyclical low point in the cycle.
“This is a unique opportunity for investors to participate in a new equity raising in the highest quality office fund in the country,” Mr Harris said.
”We see this raising as offering an attractive opportunity for our existing, and potentially new investors to acquire an interest in the Fund at the current Net Asset Value.”
GPT said the proceeds from the raising would be used to retire debt and strengthen the Fund’s balance sheet, in line with the Fund’s capital management objectives.
The group said as at 31 March 2010 GWOF had gearing of approximately 22% and more than $250 million in undrawn facilities.
As at 1325 AEDT, GPT shares were up 0.5c to 58.5c.
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