In the second of two roundtables exploring corporate sectors on the front line of the COVID-19 crisis, in November 2020 KangaNews and Westpac Institutional Bank hosted issuers and analysts from the Australian REIT sector to talk about pandemic fallout. The conversation covered crisis response and the new shape of the sector in future, including the likely impact on individual property categories.
While true corporate deals in the Australian market last year did not reach the heights of 2017, a second-half resurgence brought record volume from triple-B issuers and hints that extended duration is on the cards once more. The question is whether the corporate space will continue to grow in 2020 or lose momentum as it did in 2018.
A surfeit of local and offshore demand for long-dated paper prompted another Australian corporate to execute a 12-year domestic deal. General Property Trust (GPT) says the tenor suited its debt maturity profile and interest from a cornerstone investor prompted its decision to execute.
On 12 February, GPT RE, the responsible entity for General Property Trust (A/A2), launched a new 12-year, Australian dollar denominated, benchmark transaction. Indicative price guidance for the forthcoming deal is 170 basis points area over semi-quarterly swap. Pricing is expected on the day after launch, according to National Australia Bank, SMBC Nikko and Westpac Institutional Bank.
On 10 February, GPT RE, the responsible entity for General Property Trust (A/A2), announced a potential 12-year domestic deal to be led by National Australia Bank, SMBC Nikko and Westpac Institutional Bank. The transaction is expected to launch in the near future.