GPT sells MLC Centre for $800 million

The GPT Group will sell its 50% share in the MLC Centre to Dexus and Dexus Wholesale Property Fund after entering into a binding agreement.

The sale price is $800 million, representing a 3%premium to GPT's December 2018 book value. The asset has achieved a return in excess of 20%per annum for the group.

GPT announced in January it was looking to divest its share of the iconic Sydney property after boosting its income profile via food court upgrades and a re-leasing program within the office tower.

GPT's chief executive Bob Johnston said: "The sale capitalises on the significant repositioning of the asset over the past five years. The proceeds from the sale will be reinvested primarily into our development pipeline, which we believe will generate better long term returns for investors."

GPT plans to direct the proceeds of the sale into its development pipeline. New projects for the group include 32 Smith Street, Parramatta and office development in Melbourne Central.

The sale of MLC Centre is expected to be broadly neutral to the group's earnings.

The transaction is expected to settle in early April.

Read more: MLC CentreDexusGPT GroupProperty FundBob JohnstonSydney
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