GPT Group, an Australian diversified property trust, fell by the most in more than six months in Sydney trading after its second-biggest shareholder GIC Pte sold its 7.9 percent stake.
The shares were down 2 percent at A$3.84 at the close of trading in Sydney, the biggest drop since Oct. 29. Singapore’s sovereign wealth fund yesterday sold about 132.4 million shares at A$3.815 each, a person familiar with the matter said.
GPT, which is seeking to increase its funds under management by A$10 billion ($9.4 billion) from A$7.2 billion currently, in January declined to raise its bid for rival Commonwealth Property Office Fund. That followed the withdrawal of its offer for Australand Property Group’s commercial property division a year ago after failing to agree on a price.
“The important thing is whether it was an issue of just price or whether GIC was disappointed with management because they didn’t get Australand, they didn’t get Commonwealth Property,” said Winston Sammut, managing director of Sydney-based Maxim Asset Management. “If they’re taking a profit both on the stock and on currency, maybe they think at these levels it’s got to be difficult for it to continue.”
GPT shares have gained 13 percent this year, after dropping 7.6 percent in 2013. The benchmark S&P/ASX 200 Index rose 0.9 percent today.