Property group GPT has launched an $800 million placement as it seeks to increase its stake in the Darling Park and Cockle Bay Wharf complex in Sydney.
GPT announced on Wednesday its shares will remain in a trading halt as it embarks on the capital raising, which comprises of a fully underwritten $800 million institutional placement and a non-underwritten share purchase plan of up to $50 million.
GPT said the equity raising would support various growth initiatives, including the proposed $531 million acquisition of a further 25 per cent interest in the Darling Park 1 and 2 office complex and Cockle Bay Wharf in Sydney’s Darling Harbour.
The deal would increase GPT’s stake in the office and dining complex to 75 per cent along with its GPT Wholesale Office Fund.
The Darling Park acquisition would also give GPT a 25 per cent interest in the proposed Cockle Bay Park development, which recently received a Stage 1 planning approval and will add more office accommodation, retail and entertainment space to the precinct.
“The group is excited by this compelling Sydney office investment opportunity,” GPT chief executive officer Bob Johnston.
“Darling Park provides the group with an enhanced exposure to the strong Sydney office market via modern, high quality assets and access to future growth through the Cockle Bay Park development.”
The new shares under the placement will be issued at $6.07 per security, representing a 4.1 per cent discount to GPT’s closing price on Tuesday.
Shares in GPT are currently at their highest point since the depths of the global financial crisis in 2008, lifting 2.93 per cent on Tuesday to reach $6.33 before entering a halt.
Shares in the company are expected to commence trading on Thursday.
Mr Johnson said the proceeds from the capital raising will also fund growth from within the group’s development pipeline, including the 26,400 square metre facility at Truganina in Melbourne and two projects at Wembley Business Park in Brisbane.
The group said it is also well progressed on securing a new 50,000 square metre pre-leased logistics investment in western Sydney via a fund-through arrangement and is on track with the delivery of its $266 million office development in Parramatta.
It expects to commence the new office and retail development at Melbourne Central in 2020.
The company’s share price has lifted 18.54 per cent so far this year.