Australia's GPT to sell tourism resorts

Australian real estate investment trusts (REITs) such as GPT are reeling from the global credit crisis as battered share prices and debt markets make it hard for them to raise funds.

GPT Chief Executive Nic Lyons said on Friday that the company had appointed Jones Lang Lasalle to help it offload its hotel and tourism unit, which includes the Ayers Rock Resort near Uluru in Australia's outback.

GPT valued the assets to be sold at A$900 million, he said.

"We don't see this as core. We'll look at marketing the portfolio," Lyons said by telephone. He said GPT did not "have to sell" the portfolio but wanted to exit hotels to focus on properties in industries with less volatile earnings.

Potential buyers, which Lyons said could be local or foreign, will be offered GPT's Voyages Lodges chain of eco resorts that includes Lizard and Heron islands in Queensland, Cradle Mountain Lodge in Tasmania and El Questro Resort in Western Australia.

Lyons said the proceeds would likely be used initially to pay down debt.

GPT said last week its operating income would drop to A$464 million in 2008, down 27 percent from a previously forecast A$633 million and compared with A$605.1 million in 2007.

GPT's portfolio includes Australian retail, office, industrial and hotel assets worth over A$10 billion, as well as a European and U.S. joint venture with investment firm Babcock and Brown BNB.AX with property assets worth A$7.1 billion. It also owns some housing for seniors in the United States.

The tourism portfolio comprises about seven percent of the group's assets, according to local media reports.

GPT shares closed Thursday at A$1.51. The stock traded above A$3 last month.

(Reporting by Miranda Maxwell, Editing by Mark Bendeich)