GPT the latest property company hunting for a new chief

GPT is seeking a replacement for Bob Johnston. Picture: James Croucher

The top ranks of the property industry seem to be turning over by the day as long-serving executives take stock of the increasingly tough cycle.

Most recently, chief executives have exited Scentre, Mirvac, Lendlease and Stockland.

Now, $7.4bn diversified giant GPT is preparing for executive change.

Headhunters have been scouting for candidates to replace long-serving chief Bob Johnston, and the incoming boss will have a mandate to reset the group’s direction.

Mr Johnston joined GPT in late 2015 from Frasers, succeeding former banker Michael Cameron, and he simplified the operation, which included running a listed fund.

But now GPT, like much of the sector, is trading at a steep discount to asset backing.

GPT has sold off underperforming shopping centres under Mr Johnston and switched into high-returning industrial parks, but there is still plenty of work to be done, including on its office portfolio.

GPT did not make any big merger plays during Mr Johnston’s reign. But it did pick up some funds out of the AMP empire.

It now faces the challenge of integrating these retail funds, and it is still in the ring to manage a $3.6bn trust that owns shopping centres around the country.

An incoming chief could face the challenge of restoring GPT’s share price back to the book value of its assets, while also warding off potential predators once credit markets reopen.

GPT’s search is not a sure-fire indicator, but Mirvac’s search had begun about two months ago when prospective candidates were sounded out.

Additional reporting Ben Wilmot