BUZZ-Australia's GPT Group down, but MS upbeat post QuadReal deal

Reuters
05-19
BUZZ-Australia's <a href="https://laohu8.com/S/GPTGF">GPT Group</a> down, but MS upbeat post QuadReal deal

** GPT Group GPT.AX falls 3% to A$4.64, tracking losses on ASX Real Estate sub-index .AXRE, which is down 0.9%

** Morgan Stanley says retail assets operator's A$1 bln ($640.7 mln) logistics deal with QuadReal "100% on-strategy"

** Adds deal is small, given GPT has ~A$12 bln in assets

** Notes new management team has been talking up a sell-down of assets to third parties and that it's encouraging to see headway being made

** Sees co's strategy to be potentially earnings dilutive, but expects it to be minimal

** Stock rose 2.8% on Friday after partnership was announced

** Rates GPT "overweight" with PT of A$5.67

** Stock up 6.2% YTD

($1 = A$1.5608)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))

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