UK-based fund manager GPT Halverton is likely to be sold after its troubled Australian parent GPT Group said it would exit all overseas investments to focus solely on Australian real estate assets.
In a Stock Exchange announcement on Thursday, GPT chief executive Michael Cameron unveiled the company’s five-year strategy to improve its performance.
After exiting all its overseas investments, GPT will target high-quality Australian retail, office and industrial assets.
“The last couple of years have been disappointing for investors across the real estate sector,” said Cameron. “GPT is now returning to what it does best.”
He added: “GPT will ultimately focus totally on Australian assets, with all overseas and non-core investments exited over time.”
Last week, GPT said it would write down nearly A$1.16bn (£580m) of its investment in the failed European joint venture with Babcock & Brown, and said it expected the value of its portfolio to dive by A$790m.
GPT addedthat, given its intention to focus on its core Australian portfolio, it was also reviewing options for property asset manager GPT Halverton, which it bought in 2007.
Last October, Halverton founder Richard Croft and 11 of his staff left the company and set up a new fund firm, M Seven Investment Management.
