GPT undertakes $800M capital raising

The A-REIT sector remains active with GPT Group (ASX: GPT) announcing an $850M capital raising to increase its holding in the office towers at Darling Park 1 & 2 in Cockle Bay Wharf, Sydney NSW as well as to fund additional development and growth opportunities. The capital raising will consist of $800M being raised via an institutional placement with the remaining $50M being raised via a security purchase plan.

GPT will acquire an additional 25% interest in the Darling Park complex for $531M increasing its holding to 75% across the GPT Wholesale Office Fund, GPT and GWOF.

The complex enjoys strong metrics with an initial yield of 5.3%, a WALE of 5.2 years and a blended capitalisation rate of 5.04%.

Darling Park 1 & 2 consists of 103,600 sqm of office space across two 27 level office towers with Cockle Bay Wharf providing 8,151 sqm of dining and retail space. Additionally, Cockle Bay Park has recently received stage 1 planning approval will consist of 63,000 sqm of premium office accommodation and 10,000 sqm of retail and entertainment space. This provides GPT with development upside to the acquisition.

The remaining capital raised will be deployed across the future opportunities across the office and logistics sector. Some of these new developments include a 26,400 sqm facility at Truganina, Melbourne; a 20,500sqm and 14,350sqm both at Wembley Business Park.

The capital raising by GPT marks the continued inflow of money into the A-REIT sector in the last few months. This includes the recent $750M capital raising by Mirvac and the $900M raising by Dexus.