...GPT Wholesale Shopping Centre Fund's (GWSCF) asset concentration remains a key risk, although we consider it to be temporary. GWSCF's acquisition of an additional stake in Highpoint Shopping Centre, Melbourne, in September 2017 has resulted in the fund maintaining a large concentration to a single asset, which represents 44.9% by value of the fund's A$4.9 billion asset base. We believe the manager will reduce this exposure via a number of levers including targeted acquisitions or an asset swap. Our favorable view of Highpoint Shopping Centre tempers some of the asset concentration risk. We view Highpoint Shopping Centre as one of the pre-eminent shopping centers given that it is situated in a growing consumer catchment area of Melbourne's western suburbs and that it enjoys a wide range of tenant offering. To reflect this strength, we apply a one-notch rating uplift. GWSCF is committed to maintaining its gearing ratio within its target range (net debt to total assets) of 10%-30%. Following...
