Landcom purchases two-thirds of GPT’s Newcastle landholdings
20 June 2012
The NSW State Government’s land and property developer, Landcom has purchased two thirds of The GPT Group’s Newcastle city centre landholdings for $20 million.
Head of Investment for The GPT Group (GPT), Mark Fookes said that GPT would retain ownership of one third of the land and would support Landcom in delivering the desired urban renewal outcomes for Newcastle. GPT will support Landcom with its expertise in development and ability to attract third party capital but will not directly contribute any capital to future development of the site.
“The lack of commitment for significant infrastructure investment in Newcastle restricted GPT from delivering its proposed development scheme in 2009, leading GPT to redirect its resources into other opportunities. This partnership allows GPT to support Landcom in its goals for Newcastle,” Mr Fookes said.
The partnership between Landcom and GPT establishes a structure to deliver excellent urban renewal outcomes for Newcastle and the Hunter community.
Although the optimum urban renewal outcomes for Newcastle still rely on a State Government decision on fundamental infrastructure changes within the Newcastle CBD, this partnership means that the footprint for a significant city urban renewal project remains intact.
Newcastle is Australia’s seventh largest city. Set in a beautiful environment that is supported by a popular university, a healthy business community and strong demographics; the right urban renewal outcomes would make Newcastle one of Australia’s most liveable cities.
The divestment is neutral to GPT’s earnings and NTA.