GPT Management Holdings Limited (ASX:GPT) Announces Rouse Hill Town Centre Partnership
Partnership Announcement
The GPT Group (“GPT”, ASX:GPT) has established a partnership with the GPT Wholesale Shopping Centre Fund (“GWSCF”) focused on the retail asset, Rouse Hill Town Centre (“RHTC”). Additionally, GPT will acquire an extra 8.33% interest in Highpoint Shopping Centre from GWSCF, bringing its total ownership in Highpoint to 25%. This acquisition is pending approval from GWSCF unitholders at an Extraordinary General Meeting scheduled for February.
The net proceeds for GPT from the 50% divestment of RHTC, valued at $395 million, alongside the $204.6 million acquisition of Highpoint, will amount to approximately $176.1 million after transaction costs. GPT noted these transactions reflect the book value for both assets at independent valuations dated 31 December 2024. The proceeds will primarily reduce gearing until re-investment opportunities arise.
Executive Comments
Russell Proutt, CEO of GPT, commented, “The retail partnership for RHTC and GPT’s acquisition of an additional interest in Highpoint is a very positive step for both GPT and GWSCF. GPT increases its holding to 25% in one of the preeminent shopping centres in Australia and GWSCF diversifies its portfolio with a premier NSW asset that has an expansionary development commencing in the first half of 2025.” He added, “The transactions align with our strategy to provide innovative investment solutions to deliver superior returns for our investment partners.”
Future Outlook
The settlement of these transactions is anticipated by 31 March 2025. GPT will remain responsible for leasing, property, development, and investment management services for both RHTC and Highpoint. David Sleet, Fund Manager of GWSCF, affirmed the importance of RHTC, stating, “The addition of RHTC is on strategy for the Fund, enhancing asset quality and portfolio composition while also providing exposure to a strong growth market in Sydney.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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