Goodman

Goodman Group Securityholder Review 2013

Strength in numbers

Fundmanagement

Goodman’s managed funds had
$3.8 billion of undrawn debt and equity available, providing them with the momentum and capacity to participate in development and investment opportunities from the Group and broader market.

Goodman continued to build on the strength of its capital partner relationships in the 2013 financial year, growing its third party assets under management strongly to $19.5 billion, compared with $16.1 billion for the same period last year. This represents a 21% increase, reflecting the significant transactional activity undertaken during the year, together with the completion of a broad range of initiatives, which has resulted in exceptionally strong equity inflows from existing and new global investor groups across our managed fund platform. We completed the year having successfully raised $2.8 billion of new third party equity from existing and new investors. Global capital partners are attracted to Goodman’s leading global fund management platform and specialist industrial product offering, combined with the alignment of investors’ interests through Goodman’s contemporary fund management and independent governance structures. Our funds also completed a number of initiatives to further diversify debt funding sources and lengthen debt maturity profiles. At year end, Goodman’s managed funds had $3.8 billion of undrawn debt and equity available, providing them with the momentum and capacity to participate in development and investment opportunities from the Group and broader market.

Third party AUM by region

  • Japan 3%
  • UK 8%
  • New Zealand 9%
  • Greater China 17%
  • Continental Europe 18%
  • Australia 45%

Goodman North America Partnership (GNAP) secured equity of US$890 million from the Group and Canada Pension Plan Investment Board (CPPIB) on a 55/45 basis in line with GNAP’s investment strategy to target investments in key North American industrial and logistics markets, with an initial focus on development led opportunities. Separately, CPPIB and Goodman also increased their equity commitment to Goodman China Logistics Holding (GCLH) by an additional US$500 million to US$1 billion on an 80/20 basis, with both parties contributing a further US$500 million post 30 June 2013 on the same basis, reflecting the pace of growth in the joint venture’s activities in China, and taking the total equity commitment in GCLH to US$1.5 billion.

$19.5bn

third party assets under management

In Japan, we established a US$1 billion development partnership on a 50/50 basis with Abu Dhabi Investment Council, called Goodman Japan Development Partnership. A successful equity raising was also completed for the Goodman Japan Core Fund, securing US$260 million of equity commitments from global investor groups.

Goodman Australia Industrial Fund (GAIF) completed its equity raising, with total demand of over $1 billion of new gross equity commitments secured from new and existing investors. GAIF also completed two separate portfolio transactions during the year, acquiring 10 assets valued at $200 million, and announced the extension of its fund term to 2019. In the debt capital markets, GAIF completed its second US$185 million US private placement of unsecured notes with 7, 10 and 12 year maturities, and a $200 million domestic medium-term note issue on a five year term.

Goodman expanded its relationship with Malaysia’s Employees Provident Fund, with KWASA-Goodman Industrial Trust (KGIT) acquiring a second portfolio valued at $300 million, consisting of three logistics assets sourced from the Group and its managed funds. The transaction increased KGIT’s total assets to in excess of $780 million.

Goodman Hong Kong Logistics Fund (GHKLF) completed the strategic acquisition of ATL Logistics Centre Hong Kong, which was partially funded by a fully subscribed US$300 million equity raising. GHKLF also finalised an extension of its fund term for a further seven years to 2020.

In Europe, Goodman European Logistics Fund (GELF) priced its inaugural €500 million, five year Eurobond issue, with credit ratings agency, Standard & Poor’s separately upgrading GELF’s corporate credit rating, post 30 June 2013, to BBB from BBB–.

Goodman Australia Industrial Fund (GAIF) completed its equity raising, with total demand of over $1 billion of new gross equity commitments secured from new and existing investors.

Goodman Property Trust (GMT) in New Zealand completed capital initiatives during the year which provided over NZ$235 million of new equity, partially funding the acquisition of GMT’s outstanding 50% interest in Highbrook Business Park. GMT also undertook a number of debt restructuring and refinancing initiatives, amalgamating three separate bank facilities into a single NZ$600 million facility on competitive margins and terms.