GPT Completes Entitlement Offer

GPT’s entitlement offer and placement has raised approximately $1.7 billion through the issue of new securities to retail and institutional investors. GPT received strong support for both components of the Offer with existing institutional securityholders taking up all of the Institutional Entitlement Offer and 75% of the Retail Entitlement Offer taken-up by eligible retail securityholders.

Following the allotment of new securities, and other recently completed transactions, GPT’s balance sheet gearing will be less than 20% (on a pro forma basis). Further, GPT now has liquidity to fully fund all commitments through to 31 December 2010, including approximately $2.4 billion of debt maturities during this period.

GPT’s Chief Executive Officer Michael Cameron said: “We welcome the strong support from both retail and institutional securityholders. With a strong balance sheet and significantly improved liquidity, we believe that investor concerns surrounding these issues have been addressed. In addition, in conjunction with the capital raising, the major credit rating agencies have both announced GPT has been placed on positive review.”

“GPT continues to work on seeking an accelerated exit from its Joint Venture with Babcock & Brown as part of the process to refocus GPT on its high quality domestic portfolio”.

As a result of the Capital Raising the Exchange Price of the Exchangeable Securities will be adjusted in accordance with the Supplementary Prospectus and PDS issued in November 2008. Once the Exchange Price has been determined, a further announcement will be made.

Summary
• $1.7 billion capital raising successfully completed
• Balance sheet secure and significantly improved liquidity
• Balance sheet gearing of less than 20% following capital raising and other recently announced transactions
• Liquidity to fully fund commitments through 31 December 2010
• Improved credit rating (positive outlook from both rating agencies)

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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