An $800 million capital is being pursued by Australia's largest diversified listed property group GPT to fund an investment in premium office towers in Sydney’s Darling Harbour. This proposed project is also expected to deepen the group’s exposure to the logistics’ sector via modern, high quality assets.
GPT’s equity raise is for the purchase of a 25 per cent stake in the Darling Park 1&2 office complex and neighbouring Cockle Bay wharf development on Sydney’s Darling Harbour worth $531 million. The additional stake lifts the share held by GPT and its wholesale fund to a combined 75 per cent interest in the 2 properties.
Under the institutional placement underwritten by UBS and Macquarie Capital, shares are being sold at a fixed issue price of $6.07 per security, representing a 4.1 per cent discount to GPT’s closing price on 18 June this year. The large equity push is by far the latest large-scale effort for the property sector, following $900 million raise by Dexus and a $750 million placement by Mirvac for its development.
Darling Park 1 & 2 offers 103,600 square metres of net lettable area across two 27-level office towers, providing premium office accommodation. On the other hand Cockle Bay Wharf provides 8,151 square metres of dining and retail space with development plan including 63,000 square metres of premium office accommodation and 10,000 square meter of retail and entertainment space.
The proceeds from the raising will also fund the next stage growth from the Group’s development pipeline across the office logistics sectors.
Article and image source: https://theurbandeveloper.com/articles/gpt-group-seek-to-raise-800-million-for-sydney-cbd-buy
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