Australian property manager GPT has bought a logistics portfolio and an office building from Ascot Capital for A$681.7m (€436m).

The industrial portfolio consists of 23 logistics facilities, mostly on Australia’s Eastern seaboard and lifts the ASX-listed company’s total logistics holdings to A$4.1bn. The office building is located in Canberra.

GPT’s CEO, Bob Johnston, said: “The Ascot portfolio, with its 9-year WALE and strong tenant covenants, is a great addition to GPT’s existing A$3.5bn portfolio.”

The acquisition would increase GPT’s investment portfolio weighting to the logistics sector to 26%, he said, progressing the group closer toward its medium-term target of approximately 30%.

“Growth in the sector will also be realised through GPT’s logistics development pipeline, with an expected end-value of approximately A$1.4bn.”

GPT will fund the transaction with debt, which will take its pro forma 30 June gearing to 27.9% within GPT’s target gearing range of 25% to 35%.

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