TOKYO, Sept. 7, 2012 /PRNewswire/ -- Goodman
Japan today announced that it has
successfully completed a number of initiatives to strengthen its
position in Japan, including the
establishment of a new US$1 billion
development partnership and new equity commitments for the Goodman
Japan Core Fund.
(Photo: http://photos.prnewswire.com/prnh/20120907/HK66278-a
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(Photo: http://photos.prnewswire.com/prnh/20120907/HK66278-b
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Key announcements:
- Goodman Japan has established
the Goodman Japan Development Partnership ("GJDP"), which is a
50/50 venture between Goodman and the Abu Dhabi Investment Council.
A combined US$500 million of equity
has been allocated to GJDP, with the leverage capability of the
Partnership allowing for an initial investment target in excess of
US$1 billion.
- GJDP has executed an agreement to acquire a super prime 30,000
sqm development site in Ichikawa, Tokyo Bay on which a 60,000 sqm
modern logistics facility will be constructed.
- Successful closing of the stage 1 equity raising for Goodman
Japan Core Fund ("GJCF") with three global institutional investors,
increasing GJCF's external equity commitments to over US$100 million.
- Increasing the occupancy of GJCF's portfolio to 99% with the
signing of two new leases with existing customers over properties
in the portfolio. This reflects the high levels of customer demand
in Japan for properties managed by
Goodman Japan and further improves the high cash yield enjoyed by
investors in GJCF.
Goodman Japan Development Partnership
GJDP will target logistics development opportunities in key
Japanese markets with an initial focus on Tokyo and Osaka. GJDP will capitalise on the proven land
sourcing expertise of the Goodman Japan team, strong local and
global customer relationships and high levels of customer demand
for modern logistics space.
The Ichikawa land acquisition, together with the previously
announced land acquisitions in Osaka Bay and Tokyo Bay, means that
GJDP launches with an initial investment in three super prime
development projects with a planned total GLA of 250,000 sqm and an
estimated end value in excess of JPY55.5
billion (US$700 million).
Greg Goodman, CEO of Goodman
Group said, "Today's announcement further demonstrates our
successful capital partnering approach with major global investor
groups and underscores our strategy of matching third party capital
with our growing development pipeline. GJDP provides us with
significant capacity to accelerate our expansion plans in
Japan in a prudent and measured
manner. It is also pleasing to see our team in Japan leverage their strong, local
relationships over the last 10 months to acquire these three super
prime development sites for GJDP. All three projects are in key
port locations, where demand exceeds supply, and have been acquired
in transactions negotiated off-market."
US$700 million development book
in Japan
The acquisition of Goodman Ichikawa follows the acquisition of
Goodman Kawasaki in March of this year and Goodman Sakai late last
year.
Key details of Goodman Ichikawa:
- Ichikawa is widely considered one of the best locations in
Japan by logistics operators;
- Strategically located a short distance to the Tokyo CBD with
easy access to Haneda Airport, Tokyo Seaport and Chiba
Seaport;
- Site located in easy walking distance to Futamata-Shinmachi
train station with plans to construct a 60,000 sqm modern,
multi-tenant logistics and distribution centre with ramped access
to all floors; and
- Estimated completion value in excess of JPY17 billion (US$215
million).
Paul McGarry, CEO of Goodman
Japan said, "We have a focused strategy in Japan. We are focused on the very best
locations where structural changes are leading to increased
customer demand and supply remains constrained. The three new
development projects enable us to deliver solutions tailored to
meet the needs of our customers who are under continual cost
pressures due to the structural changes occurring in the Japanese
manufacturing, retailing and logistics sectors. The new
developments will enable our customers to realise operating
efficiencies and improved margins."
Goodman Japan Core Fund
Key points:
- GJCF is a high quality, modern portfolio of nine completed
logistics facilities and one parcel of development land located in
prime logistics locations in and around Tokyo, Osaka
and Fukuoka;
- The portfolio has an average age of 5.0 years and average
weighted lease expiry of 4.3 years;
- Customers in the portfolio include a number of leading Japanese
and international third party logistics providers;
- Portfolio valuation in excess of JPY49
billion (US$620 million)
conservatively leveraged at 50% with a 5 year debt facility that
was extended in February 2012 on
attractive terms;
- GJCF's investment strategy is to invest in Japanese logistics
assets to deliver stable income driven returns with potential for
income growth and capital appreciation;
- GJCF also provides investors with an enhanced return with a
moderate exposure (less than or equal to 10% of GAV) to de-risked
development opportunities;
- Additionally, GJCF benefits from a first right of refusal over
any on market investment acquisitions and developments completed by
Goodman Japan or the newly established GJDP; and
- Currently a number of additional global institutional investors
are undertaking due diligence with closings for stage 2 of the
equity raising for GJCF to be undertaken later in the year.
Paul McGarry, CEO of Goodman
Japan said, "Structural changes in the Japanese logistics market
are driving demand for modern logistics space with supply in key
locations remaining constrained. GJCF is well placed to take
advantage of these factors and provide institutional investors with
a stable, income driven investment return. Global investors are
attracted by these characteristics and have chosen to partner with
Goodman in Japan due to our high
quality portfolio, strong track record and the partnership approach
we take to fund governance, with high levels of investor and
manager alignment. We are very pleased to welcome these new
investors into GJCF."
About Goodman Group (ASX: GMG)
For more information please visit www.goodman.com
For further information, please contact:
Mathew Werner
Group Corporate Communications Manager
Tel +61-2-9230-7159
Mari Tokaji
Central Executive, Goodman Japan
Tel +81-3-6910-3341
SOURCE Goodman Group
