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GPT Group Buys $438M Seniors Housing Portfolio

SYDNEY-The portfolio consists of 1,982 units in 19 assets in Connecticut, Massachusetts and Rhode Island. Each property was constructed within the last eight years.

By Brian K. Miller | Updated on December 14, 2006

(To read more on the multifamily market click here.)

SYDNEY-GPT Group has entered the U.S. seniors housing market by acquiring a 95% interest in 19 assets in the New England region of the United States. The locally headquartered listed property company paid $438 million for the 1,982-unit portfolio and an additional $3.5 million for a 20% stake in the manager of the portfolio, Benchmark Assisted Living, which will acquire the remaining 5% of the real estate assets.

The acquisition, 100% funded with debt, was made on behalf of the GPT Wholesale Office Fund. The investment is expected to achieve an initial yield of 7.1% pre-costs (6.8% post costs). GPT chief executive Nic Lyons calls the acquisition a major milestone in the company’s efforts to develop a business model that will deliver growth of 4%- to 5% per annum over the medium to longer term.

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