Australia's GPT buys back A$526.2 mln 2009 bonds

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SYDNEY, Dec 2 (Reuters) - Australian property trust GPT
Group (GPT.AX) has bought back A$526.2 million ($344.4 million)
of notes maturing in 2009 at 200 basis points over swap and
BBSW, a market source said on Tuesday.

GPT said last week it was planning to buy back up to A$700
million of bonds maturing on March 30, 2009.

Around 20 Australian investors, mostly fund managers,
participated in the offer, which settles on Monday.

GPT bought back a fixed rate tranche of A$250.3 million and
a floating rate tranche of A$275.9 million, paid for by some of
the proceeds of a A$1.6 billion share placement completed last
week.

Westpac Institutional Bank and UBS jointly managed the
buyback offer.

Australia's property sector has been among the biggest
casualties of the global credit crunch, and GPT has been hit
especially hard.

It has borrowed in foreign currencies and was exposed to
the recent dramatic slide in the Australian dollar, which lost
a quarter of its value in just two months.

The bond buyback reduces GPT's short-term debt to A$173.8
million. It also has a A$4 billion loan facility due in October
2010.

GPT is rated BBB by Standard & Poor's and Baa2 by Moody's.
($1=1.528 Australian Dollar)
(Reporting by Cecile Lefort)