Fund
management

Global capital partners are attracted to Goodman’s leading global fund management platform which is underpinned by our specialist industrial sector expertise, the strength and quality of our operating platform and our proven capability.

We continued to build on our capital partner relationships during the year, raising $0.9 billion of new third party equity across our managed funds. Our funds also completed a number of initiatives to further diversify debt funding sources and lengthen their debt maturity profiles.

We secured an initial $300 million equity commitment from EPF, with the establishment of a new global logistics relationship. This was made through an initial investment in an Australian industrial portfolio, consisting of six of Goodman’s properties, and the establishment of a new investment vehicle, KWASA-Goodman Industrial Trust. Separately, in China Goodman and CPPIB increased their equity commitment in Goodman China Logistics Holding to US$500 million.

Third party AUM by region
Japan 4%
New Zealand 8%
UK 10%
Greater China 13%
Continental Europe 17%
Australia 48%

Goodman European Logistics Fund (GELF) raised €351 million of new equity by way of a pro-rata rights issue, with €200 million underwritten by Dutch asset managers, APG (€150 million) and PGGM (€50 million) and a further €145 million by Goodman. GELF separately agreed credit approved terms for an €800 million debt package, consisting of €400 million of secured facilities and a €400 million unsecured facility. The unsecured facility was structured to allow GELF to transition to the debt capital markets over time and diversify its long-term funding sources. This strategy was progressed in the second half of the year, with GELF attaining first time issuer ratings from Moody’s (‘Baa3’) and Standard & Poor’s (‘BBB-’), both with stable outlook.

Investors in the £1.1 billion Arlington Business Parks Partnership (ABPP) agreed to extend the fund for a further five years. ABPP also successfully negotiated a new £350 million banking facility with a syndicate of three European banks.

Goodman Property Trust (GMT) in New Zealand raised NZ$63.4 million of new equity through the underwrite of its Distribution Reinvestment Plan. GMT also undertook a number of refinancing initiatives, extending and renewing NZ$132 million of bank facilities at competitive margins, with its average term to maturity across all facilities at 3.1 years.

In Australia, Goodman Australia Industrial Fund successfully completed its inaugural US$300 million US private placement issue of unsecured notes, which were issued in two tranches with 10 and 12 year terms respectively.

New third party equity raised
across our managed funds

$0.9b