GPT to sell 50 per cent stake in MLC Centre

Real estate firm GPT Group has announced it plans to sell its 50 per cent share of the MLC Centre and reinvest the proceeds from the sale into its development pipeline.

The landmark A-Grade office tower and retail complex comprises 66,829sqm of office space, 6,013 sqm of retail space, a theatre, and 308 car spaces.

Over the past five years, the building has undergone a significant upgrade to the food court, together with an extensive re-leasing program undertaken within the office tower which has enhanced its income profile.

Bob Johnston, GPT’s chief executive, said the group plans to reinvest the proceeds from the sale on the new office tower at 32 Smith Street, Parramatta, and a planned new office tower at Melbourne Central.

He said the group will also continue to seek new logistics development opportunities following the completion of a number of successful developments over the past two years.

The divestment of the MLC Centre is expected to be broadly neutral to earnings for the group in 2019 before any reinvestment of the sale proceeds.

The sale of the MLC Centre would see GPT’s Sydney office exposure initially reduce to 60 per cent (from 65 per cent), with its weighting to Melbourne increasing to 34 per cent (from 30 per cent).

GPT, which owns and manages a varied portfolio of Australian retail, office and industrial property assets, also includes Australia Square, Rouse Hill Town Centre, and Melbourne Central in its portfolio.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Loading...

Inside Retail Polls

Retail Outlook 2019
How are trading conditions for you in 2019?

Twitter

Coles has reported sales growth of 3.1 per cent at its first half-year results, but the costs of a restructure had… https://t.co/UVRzhbitNM

2 hours ago

Retailer offers attractive benefits in bid to retail talent. https://t.co/S47QTRVohJ

5 hours ago

Sussan Group thanks customers for helping it raise $9 million for charity, helping people with issues surrounding b… https://t.co/pT8WdZTREA

7 hours ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered