• Viersen Logistics Centre, Viersen, Germany

Fund management

  1. $2.2bn
    of new third party
    equity raised
  2. $4.5bn
    of available debt
    and equity
  3. >12%
    average total returns

 

DB Schenker, Leipzig Logistics Centre, Leipzig, Germany
DB Schenker, Leipzig Logistics Centre,
Leipzig, Germany

Goodman continued to benefit from the investor demand for high quality industrial assets and further strengthened its capital partner relationships during the year, achieving significant equity inflows from existing and new investors across our managed fund platform. We successfully raised $2.2 billion of new third party equity, reflecting the investor focus on partnering with specialist industrial property groups with proven development capability. In turn, the disciplined execution of our fund investment strategies and their commitment to creating long-term value for our global investors, delivered an average total return in excess of 12% in the 2014 financial year. Third party assets under management increased to $22.4 billion compared with $19.5 billion for the same period last year. This was the result of the completion of a number of fund initiatives, together with developments completed by Goodman during the year, which were predominantly pre-sold to, or pre-funded by, our managed funds. A number of initiatives to diversify debt funding sources and lengthen debt maturity profiles were also undertaken by Goodman’s managed funds, providing $4.5 billion of available debt and equity. This ensures they are well positioned, with significant momentum and investment capacity, to take advantage of a broad range of development and investment opportunities in future years.

In Europe, a new partnership called KWASA Goodman Germany (KGG) was established between Goodman and Malaysia’s Employees Provident Fund (EPF) on a 70:30 basis, with EPF holding the larger share. An initial €500 million equity commitment was contributed to KGG, which was launched during the year with the acquisition of a €213 million portfolio of German properties sourced from the Group and Goodman European Logistics Fund (GELF). Separately, GELF completed a €550 million equity raising from existing and new investors, with the Group selling €110 million of its cornerstone investment in GELF to meet the high level of excess investor demand.

In Japan, Goodman and Abu Dhabi Investment Council’s equity allocation to the Goodman Japan Development Partnership (GJDP) was increased to US$800 million, while Goodman Japan Core Fund’s (GJCF) US$100 million equity raising to fund the acquisition of the Goodman Sakai development closed oversubscribed. GJCF has subsequently undertaken a further US$300 million equity raising, to help fund the acquisition of additional completed developments from GJDP, which closed post 30 June 2014.

The term of the Goodman China Logistics Holding (GCLH) partnership between the Group and Canada Pension Plan Investment Board was extended to 2019, with GCLH also receiving an additional US$500 million equity commitment, taking the total equity for the partnership to US$1.5 billion. In Hong Kong, our Goodman Hong Kong Logistics Fund successfully priced an inaugural US$400 million Euro medium-term note issue on a 10 year term, while Goodman Property Trust (GMT) in New Zealand extended its retail bond programme, with the issue of a new NZ$100 million senior, unsecured seven year bond. GMT also refinanced its main $600 million finance facility, lengthening the term for a further three and a half years.