Half of Harry Seidler's MLC Centre to be sold by GPT

Half of Harry Seidler's MLC Centre to be sold by GPT
Half of Harry Seidler's MLC Centre to be sold by GPT

The real estate investment trust, GPT Group has announced it will sell its 50 per cent share of the MLC Centre in Sydney’s central business district.

It is speculated the stake could fetch $800 million. It has a $725 million book value.

The proceeds will be directed to new office and residential towers at Melbourne Central shopping centre and at Parramatta.

GPT chief Bob Johnston said the group’s investment in the MLC centre had delivered investors an “exceptional” return.

The sale will see GPT’s Sydney office exposure fall from 65 per cent to 60 per cent.

It will lift its Melbourne exposure from 30 per cent to 34 per cent.

Half of Harry Seidler's MLC Centre to be sold by GPT

Shares in GPT closed flat at $5.53 yesterday. 

GPT jointly owns MLC Centre with office landlord specialist Dexus who paid $722 million in 2017 when it was sold by QIC.

In 2011 GPT had offered to sell its half stake in Sydney’s iconic MLC Centre to their then co-owner QIC.

In its 2010 annual results, the group’s share of the 67-storey, Harry Seidler-designed building was valued at $368 million.

The MLC Centre was built by Lend Lease in 1978. GPT bought a 20% share in 1990.

In 1996 GPT increased its share by 15% and QIC bought a 25% stake following MLC selling a 40% interest in the building.

In 1997, GPT and QIC picked up the remaining 40% held by MLC to become equal owners of the building.

Dexus chief executive Darren Steinberg says the property trust will consider buying the other half of Sydney’s MLC Centre.

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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