GPT has quickly bought and settled on the purchase of a further 16.67% stake in Highpoint Centre and the adjacent Maribyrnong Homemaker City Centre for $206.3 million (excluding acquisition costs).
CEO Michael Cameron said the price has been determined by a market valuation and values the Highpoint Shopping Centre interest at $197.5 million representing a capitalisation rate of 6.0% and the price for the Maribyrnong Homemaker City Centre interest was $8.8 million representing a capitalisation rate of 9.0%.
The shopping centre is located in Melbourne’s North West.
The average yield on the combined purchase price of $206.3 million (excluding acquisition costs) across both properties is 6.25%.
Settlement occurred yesterday.
The property was bought by GPT after the Besen family offered the GPT Wholesale Shopping Centre Fund first rights to buy in April this year. GWSCF is the joint owner of Highpoint which it bought in March 2006 for $621.2 million.
Cameron said Highpoint is one of Australia’s leading shopping centres and is great fit for the company’s strategy.
“The asset has one of the largest trade areas for a regional centre in Australia and attractive long-term expansion opportunities with significant existing land holdings.
“Highpoint was ranked fourth in the 2009 Shopping Centre News Big Guns survey and, as at 30 June, generated total moving annual turnover of $779 million (+3.8%) and specialty sales per sqm of $9,397 (+6.2%),” he added.
More importantly, Cameron said GPT had liquidity of $3 billion and can sufficiently fund the purchase without the requirement to refinance any maturing facilities through to the end of 2010.
The acquisition of this interest is expected to increase gearing by 1.5% to approximately 21.5%.
GPT’s guidance for 2009 remains at $365 million in realised operating income with a distribution per security of 4.5 cents.
Australian Property Journal