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.

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