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November 8, 2019
September Building Approvals continue to fall
October 31, 2019
Stockland add to North Sydney Development site
November 8, 2019
GPT Acquires 25% more of Darling Park
June 20, 2019
GPT announced this week an acquisition of a further 25 per cent interest from Brookfield Properties in the Darling Park 1 & 2 office complex and Cockle Bay Wharf.
GPT will pay Brookfield a total consideration of $531 million for the interest in Darling Park, which will be funded by a fresh equity raising.
Prior to the GPT acquisition, Brookfield held a 30% interest, GPT Wholesale Office Fund each held 50% and the unlisted AMP Capital Wholesale Office Fund, held the remaining 20%. Following the completion of the acquisition the GPT group will control a combined 75 per cent interest in the Darling Park 1 & 2 and Cockle Bay Wharf complex. It is believed that AMP Capital will take up Brookfields remaining 5% interest.
Darling Park 1 & 2 comprise 103,600 square metres of net lettable area across two 27-level office towers, while Cockle Bay Wharf currently provides 8151 square metres of dining and retail space.
The key metrics relating to the acquisition of Darling Park include:
• A blended capitalisation rate of 5.04 percent;
• Initial yield of 5.3 per cent; and
• Weighted Average Lease Expiry of 5.2 years (including signed leases).
The previous owners consortium including GPT, Brookfield and AMP Capital announced plans for a 3rd office tower and redevelopment which will comprise approximately 63,000 square metres of premium office accommodation and 10,000 square metres of retail and entertainment space replacing the existing Cockle Bay Wharf at a cost of $649m. Approval for the tower was delayed due to overshadowing concerns but was finally given the green light in May 2019 by the state's independent planning commission.
The Darling Park acquisition opportunity has been secured through GWOF’s pre-emptive right over the asset and is subject to the consent of Property NSW.