GPT chief Bob Johnston’s exit to shake up ranks

A senior executive is already being touted as the most likely replacement for long-term CEO Bob Johnston, who exits after overhauling the property empire.

Chief executive Bob Johnston says it is the right time for chairman Vickki McFadden and the board to start planning for growth continuity at GPT. Picture: John Feder

Diversified property giant GPT Group has formalised the end of chief executive Bob Johnston’s tenure, saying he will retire by December, after more than seven years at the helm.

His departure had been expected as the company comes into a tougher time in the property cycle after he grew its logistics and funds operations.

Mr Johnston will continue as chief executive until his successor starts and he will work with the board to ensure a smooth transition.

GPT chairman Vickki McFadden confirmed human resources firm Russell Reynolds would assist with the selection process that will consider both internal and external candidates “to ensure the right leadership to execute on GPT’s strategy and build on its success”.

Both the chief executive’s departure and the appointment of the head-hunter were flagged by The Australian last October amid a heavy turnover of real estate chiefs as the property cycle turns.

Mr Johnston said he remained committed to leading GPT and ensuring that there was a smooth transition process for his successor.

“It is the right time to advise of my intention to retire and to provide the board with sufficient time to allow for a smooth transition and continuity,” Mr Johnston said.

Market analysts see GPT chief financial officer Anastasia Clarke as the best-positioned internal candidate for the role and other senior executives have departed the company in recent years.

Ms Clarke runs GPT’s capital management, financial reporting, accounting, tax, procurement, group strategy, M&A and technology.

Her past roles include chief financial officer at New City Australia and Singapore, treasurer and head of finance at Dexus, and corporate treasury and project finance roles at Lendlease.

It comes at a time when chief executives have exited Scentre, Mirvac, Lendlease and Stockland in recent years and once lucrative share packages have shrunk in value as prices have fallen.

Mr Johnston joined GPT in late 2015 from Frasers, succeeding former banker Michael Cameron.

He simplified the operation, exiting listed funds management. GPT has bolstered its funds unit, but the company is trading at a discount to asset backing as investors worry about falling property prices.

GPT has sold off underperforming shopping centres and switched into high-returning industrial parks, but it still faces questions about the long-term future of its retail holdings.

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

But its latest play for a $3.6bn AMP-run shopping centre fund was abandoned.

Shares in GPT closed down 0.2 per cent at $4.50, against the benchmark index’s fall of 0.8 per cent.