Australian property developer acquires stake of competitor

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An Australian property developer has acquired a 12.7 per cent strategic stake in a rival company, Reuters reports.

Stockland Group has bought a 12.7 per cent strategic stake in GPT Group sending GPT'S shares skyrocketing by 37 per cent.

Reuters described Stockland as "cashed up" and reported that it and bigger rival Westfield Group, the world's top shopping mall owner are searching for distressed assets.

The news agency described how a number of real estate groups were now struggling after going on acquisition sprees when property prices were much higher.

Commenting on the current situation, Andrew Parsons, managing director of property funds manager Resolution Capital, said: "It would be pretty naive to believe there aren't going to be some great acquisition opportunities over the next 12-18 months."

Meanwhile, despite the 12.7 per cent stake, Stockland's managing director Matthew Quinn told Reuters that he had no current plans to bid for GPT.

Stockland was founded in 1952 and was listed on the Australian Stock Exchange (ASX) in 1957. Today it is one of the top 50 ASX listed companies.