Europa and Australia’s Goodman join forces

London-based Europa Capital Partners and Sydney-based REIT, Goodman Group, are to scout land to develop distribution facilities and logistics property across the UK.

London-based private equity real estate firm Europa Capital Partners and Sydney-based logistics real estate developer and fund manager Goodman and are to form a partnership investing in development land in the UK for logistics and distribution facilities.

The joint venture will target land already benefiting from outline planning permission on which they intend to secure pre-let leases prior to development.

In a statement, the firms said the JV had capacity to buy sites valued at up to £60 million (€69 million; $95 million) at any given time.

The first land site to be acquired is expected to be a 16-acre site in Kent, southeast England, where the pair are planning to submit a detailed planning application within the next month, they added.

Goodman, in which China Investment Corporation (CIC) is an investor, is expanding its logistics business in the UK, it said in the statement. Chief executive, Greg Goodman, said it was matching “new third party capital” with Goodman’s development pipeline.

The firm expanded in the UK in the years preceding the credit crunch, most notably with the £320 million acquisition of UK logistics developer Rosemound. The company is one of the largest industrial property developers in the world with total assets under management of A$16.2 billion (€11.4 billion; $15.7 billion).

Recent reports say it is leading a consortium involving China Investment Corporation, Canadian Pension Plan Investment Board and the Dutch pension group Algemene Pensioen Groep (APG) to bid for ING Real Estate’s Australian Industrial Fund.