A buoyant office market and tightening vacancy rates in Sydney has delivered a massive windfall for GPT group, with the developer revealing on Monday that revaluations across its office, retail and logistics portfolios has added $457 million to its book value.
The revaluations across GPT portfolios equate to a 3.7 per cent gain on the developer’s book value from six months ago.
The ASX-listed property investment group had 52 of its assets independently valued ahead of its 2018 interim results due in mid-August.
Major contributors to the uplift include the iconic Harry Seidler-designed Australia Square – GPT owns a 50 per cent stake in the building – which marked a 17.3 per cent uplift in value; the 85,000sq m 1 Farrer Place – GPT owns 25 per cent – which reported an 11.9 per cent uplift; the 73,300sq m Citigroup Centre at 2 Park Street – GPT owns 50 per cent – which reported a 10.2 per cent increase and the 67,000sq m MLC Centre – GPT owns 50 per cent – which increased 8.1 per cent.
GPT’s retail portfolio, which includes a recently acquired 25 per cent stake in the Highpoint Shopping Centre, also reported an uplift with the nearly 100,000sq m Westfield Penrith increasing 6.4 per cent. GPT owns a 50 per cent stake in complex with Scentre.
“The investment portfolio continues to deliver strong growth, most notably across our office portfolio, with an increase in market rents making a significant contribution to the overall valuation outcome,” GPT chief executive Bob Johnston said.
The $457 million gain equates to 25 cents per security, and an increase of 5 per cent on the 31 December 2017 net tangible assets per security of $5.04, GPT said in its announcement.
Main image: The MLC Centre, GPT owns a 50 per cent stake in the centre with Dexus.