SYDNEY, Nov. 8, 2012 /PRNewswire/ -- Goodman Group
(Goodman or Group) today announces that it has entered into a joint
venture (Joint Venture or JV) with WTORRE, one of Brazil's leaders in the development and
construction of industrial warehouse and logistics facilities and
commercial real estate. The Joint Venture will undertake the
development of prime logistics and industrial properties on a 50/50
basis in key markets throughout Brazil.
Summary
- Launch of a new Brazilian logistics and industrial
property Joint Venture, to be called WTGoodman, with Goodman and
WTORRE investing on a 50/50 basis;
- Deployment of a highly experienced team, combining WTORRE's
local market expertise and logistics capability with Goodman's
global customer base and funds management expertise;
- Development led investment strategy focused on prime
logistics and industrial properties with the objective of matching
completed property with the investment demand from Goodman's global
capital partners; and
- WTORRE will contribute four existing development land sites,
two in Sao Paulo and two in
Rio de Janeiro, comprising 850,000
sqm of Gross Lettable Area (GLA) and a forecast total end value of
US$1.1 billion.
Strategic rationale
Brazil is one of the world's
fastest growing economies with a population of 195 million and a
growing middle class. Investors are attracted by the emerging
market economic growth and stable geopolitical environment.
The Brazilian industrial real estate market remains highly
fragmented with clear capital constraints. This provides an
opportune time to enter key logistics locations and develop top
tier sites to deliver new investment product for global and local
customers alongside our global capital partners, who have expressed
a strong desire to invest alongside Goodman in Brazil.
"Our entry into Brazil further
improves our position as a leading global logistics property group.
With A$20 billion of assets under
management throughout Asia Pacific
and Europe and following our recent launch into North America, our entry into Brazil represents a further strategic
expansion of our operating platform to service our global customers
and capital partners in one of the world's fastest growing
economies," said Mr Goodman.
WTORRE, founded by Chairman Walter Torre
Junior in 1981, has built more than 5 million sqm covering
211 projects across the office, retail and industrial sectors.
WTORRE is a key market player, providing innovative solutions in
engineering, real estate and infrastructure. It has completed 71
logistics developments, most of which have been built to suit, and
undertaken a number of landmark projects including Santander Brazil
Headquarters in Sao Paulo, Rio
Grande Shipyard, comprising the largest dry dock in the southern
hemisphere and Petrobas' new headquarters in Rio de Janeiro, which at 100,000 sqm will be
Brazil's largest commercial
building. WTORRE's customer base includes Carrefour, Nestle,
Walmart, Volkswagen and Unilever.
Joint Venture
The Joint Venture is to be known as WTGoodman. It combines
Goodman's global expertise as a leading specialist fund manager of
industrial property and business space, extensive global customer
and capital partner relationships, with the strength of WTORRE's
leading market position and proven logistics development capability
in Brazil.
"Following extensive due diligence, Goodman is delighted to
partner with WTORRE given their established platform, local
relationships, reputation and expertise and their strong
development capability. Critical to the success of Goodman's
continued global expansion is identifying a local partner with
complimentary resources and expertise. Both WTORRE and Goodman
employees will form the Joint Venture to ensure the optimal mix of
local knowledge and global experience in operations and
compliance," said Greg Goodman.
The Board of the Joint Venture will decide unanimously on all
major items and be comprised of four representatives, two from each
of WTORRE and Goodman, with WTORRE represented by the Chairman, Mr
Walter Torre and CEO, Mr
Paul Remy and Goodman represented by
Mr Greg Goodman and Mr Danny Peeters.
Mr Cesar Nasser has been
appointed Chief Executive Officer of WTGoodman. He has 16 years of
experience in real estate and financial markets, including five
years as Partner and Executive Director at RB Capital, one of the
largest securitisation and real estate investment companies in
Brazil. Mr Nasser brings the
requisite skills and experience to ensure he is ideally suited to
lead the WTGoodman Joint Venture.
"The establishment of WTGoodman is an exciting advancement for
both companies and I am delighted by the enormous opportunities
available to our two leading companies. Both WTORRE and Goodman
bring a wealth of complimentary resources to the joint venture and
I look forward to working with the new team to realise the strength
of their potential," said WTORRE Chairman, Mr Walter Torre.
Investment strategy and secured development sites
Equity in the Joint Venture is to be owned, and returns are to
be shared, 50/50 by WTORRE and Goodman. WTORRE will contribute
existing industrial development sites and Goodman will fund the
capital expenditure up to the value of R$341
million (A$ 160 million). The
JV will seek to undertake development of prime logistics and
industrial properties and look to contribute those developments to
an industrial investment partnership sponsored by Goodman's global
capital partners.
The launch portfolio comprises four sites, Cajamar and Itupeva
in Sao Paulo and International
Business Park (IBP) and Nova India in Rio
de Janeiro, comprising a total GLA of 850,000 sqm and a
forecast end value of US$1.1 billion.
All sites are located in established industrial precincts with
close proximity to key infrastructure and are targeting big box
users and / or multi tenanted facilities. Construction of
infrastructure at the Cajamar and IBP sites will commence shortly
and construction at Itupeva and Nova India is scheduled to commence
in early 2013.
"Low vacancy rates and a lack of supply in core markets makes
this an opportune time to enter Brazil. We believe that Goodman's global
customer network coupled with WTORRE's local knowledge, will drive
demand for our secured sites from logistics service providers,
retailers and manufacturing companies, particularly in the fast
moving consumer good and automotive sectors," said CEO Continental
Europe, Goodman and WTGoodman Board Member, Mr Danny Peeters.
For more information visit www.wtgoodman.com
For more information contact:
Goodman
Mathew
Werner
Group Corporate Communications
Tel: +612-9230-7400
mathew.werner@goodman.com
WTORRE
Jose Carlos Pegorim
+55 (11) 3529-3495 and +55 (11) 9-9149-1727
jcpegorim@mvl.com.br
Ricardo Levy
+55 (11) 3529-3472 and +55 (11) 9-7663-0894
ricardo.levy@mvl.com.br
About Goodman
For more information on Goodman, please visit:
www.goodman.com
About WTORRE Group
For more information on the WTORRE Group, please visit:
www.wtorre.com.br
SOURCE Goodman Group
