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- GPT Group has completed an $800 million share placement to raise funds for the purchase of a Sydney office complex
- Roughly 131.8 million new shares were placed at $6.07 per share, which represents a 4.1 per cent discount to Tuesday’s closing price
- Funds will be used to complete a $531 million purchase of a further 25 per cent interest in the Darling Park 1 and 2 office complex and Cockle Bay Wharf in Sydney
- GPT also still intends to raise another $50 million via a non-underwritten share purchase plan
- Shares are down 1.82 per cent today, trading at $6.22 each in a $11.22 billion market cap as at 1:38pm AEST
GPT property giant has completed its $800 million funding to buy a Sydney office complex.
GPT will tap investors for $850 million to fund the deal, which encompasses Darling Park Tower 1, leased by the Commonwealth Bank, and Tower 2, the home of IAG, and a majority stake in the proposed $1 billion, 40-storey office skyscraper at the front of the existing Darling Park towers.
The capital raising was announced yesterday, and GPT management says the placement was well supported by new and existing investors. Roughly 131.8 million new shares were placed at $6.07 per share, which represents a 4.1 per cent discount to Tuesday’s closing price.
The funds will be used to complete a $531 million purchase of 25 per cent interest in the Darling Park 1 and 2 office complex and Cockle Bay Wharf in Sydney. Once the purchase is completed, GPT and GPT Wholesale Office Fund (GWOF) will hold a combined 75 per cent interest in the Darling Park 1 and 2 and Cockle Bay Wharf complex.
GPT CEO Bob Johnston said the company was pleased with the strong support received for the placement.
“We believe the acquisition of a 25 per cent interest in Darling Park 1 & 2 and Cockle Bay Wharf represents a compelling opportunity for GPT. Importantly, proceeds of the placement will also support the next phase of growth while maintaining a very strong balance sheet position,” Bob said.
New shares issued under the placement are expected to settle on Monday 24 June. Going hand-in-hand with the placement, GPT also still intends to raise another $50 million via a non-underwritten share purchase plan in which eligible shareholders can purchase up to $15,000 worth of new shares for $5.94.a piece.
Darling Park 1 and 2 is home to a 103,600 square metre area across two 27-level office towers. Cockle Bay Wharf holds 8151 square metres of dining and retail space.
Through the purchase to be funded by the placement, GPT will also hold a 25 per cent interest in the proposed Cockle Bay Park development, which has recently received Stage 1 planning approval and will contain roughly 63,000 square metres of office space and 10,000 square metres of retail and entertainment space.
GPT shares opened at a loss today and are now trading 1.82 per cent lower than the company’s previous closing price. Shares are currently worth $6.22 each in a $11.22 billion market cap as at 1:38pm AEST.
