Three directors out as GPT Halverton focuses on stabilsation

GPT Halverton has confirmed that three of its senior directors have left the company as a result of a difference of opinion on the strategy the real estate investment fund and asset manager should pursue.

A spokesperson told PropertyEU that CEO Richard Croft, chief investment officer Taco de Groot, and Teresa Gilchrist who was in charge of new business, have been put on 'gardening leave'. This is a euphemism for sending an employee home with pay to serve out his or her notice period. Croft and De Groot were among the founders of Halverton Real Estate Investment in 2004. GPT Group, a listed property trust in Australia, acquired Halverton in 2007.

GPT Halverton has its headquarters in London and is also active in Germany, the Netherlands, France, Denmark, Sweden and Finland. The firm has total assets under management of EUR 2.3 bn. Halverton has six funds covering the industrial, office and retail sectors in Europe.

GPT Group signalled in July that its European arm, GPT Halverton, would not make a profit in 2008 and 2009. This led to the decision that GPT Halverton should re-focus to stabilise its business and concentrate on managing its existing funds, the company spokesperson said. The three departing directors reportedly wanted to continue to grow the business by exploring the launch of new funds.

The spokesperson said the management changes should not be seen as the Australians taking over from the English and Dutch. She said a new management structure will be announced with promotions likely from within the organisation.

Separately, GPT Group announced the completion on Friday of a A$1.3 bn Institutional Entitlement Offer. The company said the net proceeds from the offer will be used in conjunction with the issue of $250 mln of Exchangeable Securities to repay debt and significantly 'de-leverage GPT's balance sheet'.