Landcom, the NSW State Government developer, has purchased two-thirds of GPT’s Newcastle city centre landholdings for $20 million.
GPT will retain ownership of one-third of the land. The site is 1.8 ha in total.
Mark Fookes, GPT head of investment, says GPT will support Landcom with development and acquiring third party capital, but will not directly contribute any capital to future development of the site.
“The lack of commitment for significant infrastructure investment in Newcastle restricted GPT from delivering its proposed development scheme in 2009,” Fookes says.
The desired urban renewal outcomes for Newcastle rely on a State Government decision on fundamental infrastructure changes within the Newcastle CBD.
GPT says the divestment is neutral to its earnings and NTA.