GPT Group is exiting the European part of its joint venture with Babcock & Brown by paying a distribution in the form a security.

The decision also removes the European joint venture, which represents about 80 per cent of GPT's exposure to the Babcock & Brown joint venture, from GPT's balance sheet.

The real estate investment trust said today it expected to write down its investment in the Babcock & Brown joint venture by $1.16bn.

The Australian