GPT checks out of Brampton, Ayers Rock on the market

The Age

Wednesday December 16, 2009

By CAROLYN CUMMINS

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 took $5.9 million for the Queensland Island resort and $22.5 million for the Mount Gravatt homemaker bulky goods shopping centre in Queensland.In the past 12 months GPT has raised close to $1 billion in sales of non-core assets, including $185 million for the jewel in the stable, the Sheraton Four Points at Sydney's Darling Harbour.But in the same time frame, the trust has raised a further $3 billion through rights issues targeted at its investors, at prices as low as 35.In 2005 when the trust demerged from Lend Lease and took up in joint ventures with the failed Babcock & Brown investment bank, GPT raised cash at levels as high as $4.60 with the funds used to expand its asset base.Yesterday, GPT closed up 1 at 57 and said a sale of Ayers Rock Resort, valued at about $300 million was progressing.Analysts have said GPT needs to focus on its core Australian operations to regain investor credibility, a sentiment echoed by the chief executive Michael Cameron.Goldman Sachs JBWere's analyst Simon Wheatley forecast higher earnings in 2010 but warned the sale of US Seniors and Ayers Rock Resort would have a negative impact on overall earnings per share. "GPT is starting to look more interesting and has been a recent underperformer," Mr Wheatley said.

© 2009 The Age

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