Goodman expands CPPIB relationship with A$400 million Fund in Australia to acquire new development product
Group) and the Canada Pension Plan Investment Board (CPPIB) are pleased to
announce that they have expanded their relationship through the establishment
of a new fund, the Goodman Australia Development Fund (GADF or the Fund).
The key points relating to GADF are:
-- An initial equity commitment to the Fund of A$250 million with a target
gross asset value of approximately A$400 million
-- The Fund will be established on an 80/20 basis, with CPPIB holding the
majority share
-- GADF will be established and seeded with the acquisition of Goodman's
Kmart development in Melbourne for a total consideration of A$66.3
million
Goodman Group CEO,
following the successful
to be building on this important partnership. Today’s announcement
demonstrates the strength of our relationships with global investor groups
such as CPPIB and our ongoing ability to attract third party capital.
The new fund will focus on acquiring a range of high quality pre-committed
development opportunities in
platform for our Australian development business over the next two years.”
CPPIB’s Senior Vice-President of Real Estate Investments,
said: “This investment provides an excellent opportunity for CPPIB to enter
the Australian logistics market and to establish a strong portfolio of high
quality warehouses that we expect will deliver stable income returns over the
long term. We are pleased to continue building our partnership and look
forward to future investments alongside Goodman.”
GADF will be seeded through the acquisition of the 76,000 sqm distribution
centre currently being developed for Kmart in
was announced in January will be acquired by the Fund.
Goodman will provide asset management, development and property services
to the Fund on terms generally consistent with existing arrangements across
our existing funds management platform.
GAIF will continue to have first right of offer in relation to
acquisitions and development opportunities considered by the Group. GADF will
have a second right of offer which they will be able to exercise where GAIF
does not take up its right.
“The Group’s latest Fund with CPPIB is the first of a number of
initiatives flagged in our half year results for the 2010 calendar year and is
consistent with our stated strategy of matching new third party capital with
the Group’s
The transaction is subject to the approval of the Foreign Investment
Review Board.
About Goodman (ASX: GMG)
Please visit: http://www.goodman.com
About Canada Pension Plan Investment Board
Please visit: http://www.cppib.ca
For further information, please contact Goodman:
Greg Goodman
Group Chief Executive Officer
Tel: +61-2-9230-7400
SOURCE Goodman; Canada Pension Plan Investment Board