GPT Wholesale Shopping Centre Fund purchases 25% stake in Highpoint Shopping Centre

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The GPT Wholesale Shopping Centre Fund (GWSCF) has exercised its pre-emptive right to purchase a 25% stake in the Highpoint Shopping Centre and Maribyrnong Homemaker Centre in Melbourne from Highpoint Property Group (HPG) for $680 million. The acquisition price reflects a 10% premium to the Fund’s 30 June 2017 book value.

The purchase takes GWSCF’s ownership in the asset to 83.33% while The GPT Group (GPT) retains a 16.67% interest. GPT continues to be the manager of the Highpoint Shopping Centre.

Highpoint is one of the leading super regional shopping centres in the country and is in the Top 5 of the Big Guns of shopping centres, with an annual moving turnover of almost $1 billion. The centre boasts around 470 stores including Myer, David Jones and leading international retailers such as Apple, Zara and Samsung.

GWSCF Fund Manager Brett Williams said he was pleased the Fund had secured the additional stake, giving it further ownership of a very successful, high performing asset.

"Securing this additional interest in Highpoint is a great outcome for the Fund and another important step in delivering on the Fund strategy following the successful sale of Westfield Woden in December 2016," Mr Williams said.

"Highpoint has delivered an exceptional return of 15.1% over the past 12 months. Super prime regional centres of this calibre are rarely traded in Australia. Not only does Highpoint rank in the top five centres in Australia with regards to total centre sales, it is located within an exceptional catchment with over 1.3 million people.

"Highpoint also presents several immediate asset enhancement opportunities including the expansion of the cinema and entertainment precinct, introduction of additional international retailers, and the development of a second supermarket and fresh food precinct. The centre should also benefit from mixed use development opportunities in the future," Mr Williams said.

Settlement is scheduled to occur in late September 2017.

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For further information contact:

Scott Rochfort

Group Media Manager

The GPT Group

+61 2 8239 3938

+61 438 733 864