Property owner and manager GPT Group has dropped its $3 billion bid for Australand’s commercial and industrial assets.

After launching a bid in December last year and recently completing due diligence and discussions, GPT said it would withdraw its offer in the interests of both sets of securityholders.

“It has become apparent that a transaction at a price that GPT is willing to pay is not possible,” the group said in a statement.

GPT said it does not need to proceed with the transaction to achieve its strategic goals.

It will continue with its existing growth plans for logistics and business parks and office portfolios.

GPT made a $3 billion takeover offer for two-thirds of rival Australand’s commercial and industrial businesses last December, but was rebuffed.

The deal would have left Australand with a residential division.

Australand is a diversified property group with residential, commercial and industrial assets worth more than $2 billion.

GPT Group already has investments in shopping centres, office space and business parks.

Securities in GPT Group closed 1.7 per cent higher at $3.96 and Australand shares were 0.8 per cent lower at $3.53.