Sydney-based logistics developer-cum-fund manager, the Goodman Group, is planning to raise ¥30 billion (€220.67 million; $251.08 million) in additional equity for its Goodman Japan Core Fund (GJCF). Once the fundraising is complete, the total equity raised for the fund will be more than ¥100 billion.
PERE has learnt that the firm will formally launch the fundraising exercise in mid-2015, when both the existing investors as well as new investors will be approached for capital commitments.
The open-ended logistics fund, in which Goodman owns a 20 percent stake, currently has ¥75 billion in equity commitments. The equity has been invested mainly by European pension funds and Japanese institutional investors.
The fundraising is in line with Goodman’s plans to grow the fund’s total assets under management to $2.5 billion over the next couple of years. As much as 10 percent of the fund’s total assets can be allocated to development projects. The previous fundraising round was held in early 2014, with a similar fundraising target of $200 million.
In the last six months, the firm is understood to have acquired $350 million worth of logistics properties in Japan, taking the total value of the assets held in the fund to ¥150 billion. The fund has, so far, made investments in 14 properties.
Goodman’s most recent deals for the vehicle were three development projects, which were originally undertaken by the firm via the Goodman Japan Development Partnership (GJDP), its venture with the Middle Eastern sovereign wealth fund, Abu Dhabi Investment Council. After the completion of the projects in Nagoya and Tokyo Bay, in November 2014 and February this year, the property assets were transferred to the core fund.
GJDP, Goodman’s 50:50 Japan logistics venture with the Abu Dhabi Investment Council, reached $800 million in February last year, after an additional equity commitment of $150 million was made by each firm. The venture originally began with $500 million in combined equity commitments in September 2012.
As of beginning of May 2015, Goodman had A$30.3 billion (€21.38 billion; $24.3 billion) in assets under management, a 13 percent increase over the size of the portfolio in June 2014. The firm’s direct property investment portfolio stood at A$4.9 billion, according to a company statement.