Ayers resort on chopping block as GPT sells some of its last tourism assets

Sydney Morning Herald

Wednesday December 16, 2009

Carolyn Cummins COMMERCIAL PROPERTY EDITOR

DIVERSIFIED property trust GPT has secured $28.4 million from the sale of more non-core assets, including Brampton Island, which leaves it with the Ayers Rock Resort as its last exposure to the troubled tourism sector.Having received a token ‚2 ($3.20) this week for its 100 per cent stake in the European Halverton funds management business, GPT yesterday accepted $5.9 million for the Queensland island resort and $22.5 million for the Mount Gravatt homemaker bulky goods shopping centre in Brisbane.In the past year GPT has raised nearly $1 billion in sales of non-core assets, including the sale of the Sheraton Four Points at Darling Harbour for $185 million.But in the same time the trust has raised a further $3 billion through rights issues aimed at its investors, at prices as low as 35c.In 2005 when the trust demerged from Lend Lease and engaged in ventures with the failed Babcock & Brown investment bank, GPT raised cash at levels as high as $4.60 a security, with the funds used to expand its asset base.Yesterday GPT closed up 1c to 57c and said a sale of Ayers Rock Resort, valued at about $300 million, was progressing.Analysts say GPT needs to focus on its core Australian operations to regain credibility. This sentiment was echoed by the chief executive, Michael Cameron, who said the trust would focus on its retail, office and industrial and business park sectors.But amid the sales and the streamline focus, GPT remains under the spotlight thanks to the strategic 15 per cent of its register held by rival Stockland.An analyst with Goldman Sachs JBWere, Simon Wheatley, has tipped higher earnings in the 2010 financial year but warned the expected sale of the aged-care business US Seniors and Ayers Rock Resort will have a negative effect on overall earnings per share. "GPT is starting to look more interesting and has been a recent underperformer," he said.

© 2009 Sydney Morning Herald

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