Australian property giant GPT is intensifying its focus on funds management as part of a broader strategy to enhance returns across its $40 billion property portfolio. The company is currently pursuing the acquisition of Central Plaza II, a $400 million office tower in Brisbane’s central business district, which has been quietly offered by German investment firm Deka Immobilien Investments.

This move follows Deka’s decision to divest the asset after a previous bid by fund manager Marquette faltered amid challenging fundraising conditions. Central Plaza II, located at 66 Eagle Street, is a 23-level office tower completed in 1990. It covers approximately 31,844 square meters of net lettable area, featuring flexible, large floor plates of about 1,450 square meters suitable for major corporate tenants. The property also includes ground floor retail space and three basement levels with 211 parking bays.

Central Plaza II’s tenant base is diverse and well-leased, with occupancy at 95 percent across 25 tenants. Major anchors include Queensland Investment Corporation, law firm McCullough Robertson, as well as several state and federal government agencies. The lease structures currently feature relatively short expiries, positioning a potential buyer to benefit from rising rental rates in Brisbane’s office market.

GPT’s chief executive, Russell Proutt, has steered the company back into office assets amid a broader recovery in the sector. Last December, GPT acquired a half-interest in Sydney’s Grosvenor Place, a landmark $1.72 billion tower designed by Harry Seidler, highlighting the company’s growing willingness to seek major stakes in landmark properties. That deal involved stepping in after the Commonwealth Superannuation Corporation exercised pre-emptive rights as an existing owner of the property.

The Central Plaza II acquisition also reflects GPT’s ongoing efforts to expand its funds management platform. The company is reportedly in discussions with US investment firm TPG Angelo Gordon, which has local market experience from a recent majority stake deal in industrial parks valued at around $200 million in partnership with Growthpoint Properties Australia.

GPT’s funds management activities have been bustling in recent months. Its Wholesale Shopping Centre Fund recently acquired 50 percent interests in Sunshine Plaza and Macarthur Square for a combined $1.2 billion. Additionally, GPT, alongside Canadian QuadReal Property Group, launched a $1 billion Australian logistics fund last year targeting robust demand for logistics facilities.

These transactions are part of Mr. Proutt’s strategic shift toward active asset management, development, and fund operations, moving away from GPT’s historically more passive investment style. Securing Central Plaza II would further cement GPT’s position amid increasing scrutiny of rivals such as Lendlease and Dexus, whose funds management arms are facing operational challenges.

Brisbane’s office market is currently regarded as Australia’s strongest, underpinned by limited supply and robust rental growth. Deka initially purchased Central Plaza II in 2020 for $380 million, acquiring the asset from a partnership between Lendlease’s Australian Prime Property Fund Commercial and Abu Dhabi Investment Authority. As a strategic core asset in a rising market, Central Plaza II offers GPT a foothold in one of the nation’s most attractive office precincts.