Australian group ramps up European presence

The Goodman Group has become an even bigger force in Europe with the bolt-on of a pan-European industrial fund.

Australia’s Goodman Group has enlarged the Goodman European Logistics Fund (GELF) to €950 million ($1.4 billion) by merging it with the Celogix Property Fund.

Peter Davies, fund director, said GELF is now one of the largest European logistics funds.

Goodman launched its fund in December 2006 to acquire properties in established and emerging logistics hubs across Continental Europe. The Celogix Fund was launched six years earlier as a collective investment vehicle with a core investment strategy across the same region.

The merger adds a portfolio of 21 properties with a net asset value of €243 million at the end of September to Goodman’s existing investments, increasing GELF’s assets to 45 properties in nine European countries.

Investors in the Celogix Fund were offered the choice between taking units in GELF or receiving the cash equivalent.

Bob Reidsma, Celogix fund manager, said, “Since its launch seven years ago, Celogix has posted a total return of 13.9 percent. The merger with GELF serves to continue to deliver investors strong and stable returns.” 

Davies added, “(The) increased size provides investors with greater diversification, economies of scale and an attractive return profile.

The Goodman Group is made up of stapled companies and is the largest industrial property group listed on Australian Stock Exchange and the second largest listed specialist fund manager of industrial and business park assets globally.

The company entered the UK and Europe markets when it acquired Arlington Securities in 2005, followed by Eurinpro International in May 2006, Akeler in November 2006 and Rosemound Developments in April 2007.

The group re-branded from Macquarie Goodman to Goodman in July.