ASX 200 stock slips on $482 million retail deal

S&P/ASX 200 Index (ASX: XJO) stock GPT Group (ASX: GPT) is dipping into the red today.

Shares in the property investment company closed yesterday trading for $4.48. In early trade on Friday, shares are changing hands for $4.457 apiece, down 0.2%.

For some context, the ASX 200 is down 0.7% at the same time.

As you can see on the chart above, the GPT share price is up 2.0% since last year. The ASX 200 stock also trades on an unfranked trailing dividend yield of 5.4%.

Here's what investors are mulling over today.

What did the ASX 200 stock announce

The GPT share price has yet to post gains after the ASX 200 stock announced it was forming a new retail partnership with private investment company Perron.

As part of that new partnership, GPT will acquire a 50% interest in two Perth retail assets – Cockburn Gateway and Belmont Forum – from Perron. The deal is valued at approximately $482 million.

GPT said that the shopping centres offer a combined 119,000 square metres of gross lettable area and a moving annual turnover of more than $1 billion.

Atop the existing space, the ASX 200 stock noted that Cockburn Gateway has secured development approval for a 20-year transformation project. Stage 1 of that development reportedly has the potential for some 20,000 square metres of incremental new retail in the "near term".

What did management say?

Commenting on the ASX 200 stock's partnership with Perron this morning, GPT CEO Russell Proutt said:

This is an exciting partnership which further expands our $14 billion portfolio of retail assets with two centres that are top performing in their respective trade areas and extremely well positioned, in catchments with strong population growth and favourable demographics.

Our investment is consistent with GPT's strategy to build and diversify the group's management platform, in alignment with like-minded investment partners.

Prout added that he expects the new shopping centre acquisitions will "leverage the group's outstanding retail operational capability to drive asset performance and pursue compelling development opportunities".

Perron Group CEO Adam Irving was clearly pleased that his company had successfully concluded negotiations with the ASX 200 stock over the 50% sale in both retail properties.

"We identified GPT as an ideal partner for both Cockburn Gateway and Belmont Forum because of its industry leading experience in both retail and mixed-use developments, as this will be crucial to maximising the value of the assets over time," he said.

Irving added:

This transaction also aligns with the evolution of Perron Group's broader strategic objectives as a permanent endowment to support the work of the Stan Perron Charitable Foundation.

GPT and Perron expect the transaction to be completed in February.

The post ASX 200 stock slips on $482 million retail deal appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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