GPT Group's (ASX:GPT) AU$610 million oversubscribed capital raise for its retail fund signals robust investor demand and an increased tempo of growth initiatives, even as it is expected to not result in immediate earnings boost, Jefferies said in a note on Thursday.

The raise exceeded its original target of AU$500 million for the GPT Wholesale Shopping Centre Fund, in which GPT holds a 33.3% stake, reflecting continued confidence in large-scale retail assets amid a limited supply outlook for regional and sub-regional retail space.

The investment firm said the earnings impact from the raise is modest, amounting to roughly 0.4% accretion when fully deployed, but it increases future investment capacity coupled with borrowing, to about AU$820 million.

Jefferies maintained a hold rating but raised its price target by 9% to AU$5.04.