Australia's GPT Group down, but MS upbeat post QuadReal deal

GPT Group GPT.AX falls 3% to A$4.64, tracking losses on ASX Real Estate sub-index .AXRE, which is down 0.9%

Morgan Stanley says retail assets operator's A$1 bln ($640.7 mln) logistics deal with QuadReal "100% on-strategy"

Adds deal is small, given GPT has ~A$12 bln in assets

Notes new management team has been talking up a sell-down of assets to third parties and that it's encouraging to see headway being made

Sees co's strategy to be potentially earnings dilutive, but expects it to be minimal

Stock rose 2.8% on Friday after partnership was announced

Rates GPT "overweight" with PT of A$5.67

Stock up 6.2% YTD

($1 = A$1.5608)