Lendlease-managed Australian Prime Property Fund Commercial (APPF Commercial) has agreed to pay GPT Group A$584.6m (€360m) for the latter’s 25% stake in Sydney’s Governor Phillip and Governor Macquarie Towers.

As reported last month, GPT put its stake in the 1 Farrer Place office building up for sale, a stake valued at A$586m (€353m) at 30 June. Before a sale could be executed, GPT had to first offer the stake to APPF Commercial, which already owned a 25% stake in the towers through a vehicle jointly owned with GPT. 

APPF Commercial now jointly owns the asset with Dexus. 

GPT’s chief executive officer, Bob Johnston, said: “The sale of Farrer Place capitalises on strong demand and a rare opportunity to purchase landmark office assets.”

Johnston said proceeds from the sale would be reinvested into new opportunities, including logistics acquisitions and the group’s development pipeline, which would generate superior long-term returns for investors.

Last week, the group exchanged contracts for the purchase of three prime logistics properties and 2.35 hectares of adjoining development land at Drystone Industrial Estate, Truganina, in Victoria, for a total price of A$127.6m. GPT Group has also recently commenced speculative development of a A$33m warehouse at Berrinba in Brisbane. 

Johnston said: “These investments are consistent with GPT’s strategy to grow our exposure to the logistics sector, and complement our significant logistics development pipeline, which has an expected end-value of approximately A$1bn.”

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