Goodman buys out Macquarie JVs for $A200m

Australia’s Goodman Group has bought out joint venture partner Macquarie Group from several property interests for $A200m. The move is part of a restructuring plan which includes asset sales and a $A955 million ($599 million) capital raising mission.

Australia’s Goodman Group is acquiring joint venture property interests from Macquarie Group for $A200 million ($125 million; €100 million) as part of efforts to refocus its business and strengthen its financial model.

The industrial developer and property fund manager is acquiring 50 percent of MGA, the manager of Macquarie Goodman Hong Kong Logistics Fund, as well as Macquarie’s 25 percent interest in two Hong Kong developments and a 50 percent stake in a joint venture that gives Macquarie an interest in any new funds that Goodman raises in Asia outside of Japan.

Macquarie’s chief financial officer Greg Ward said it was the “right time” to realise value in the joint ventures, allowing it to redeploy capital to new and existing “growth opportunities. This announcement reflects our long-held real estate strategy of investing with partners to build businesses to maturity,” he added.

The announcement today came at the same time that Goodman revealed a plan to revamp its business via a $A955 million capital raise and $A510 million asset sale to strengthen its balance sheet.

Greg Goodman, chief executive and co-founder, said the measures were being taken to ensure a strong balance sheet and lower gearing. The deal to buy Macquarie’s stakes in Asia were part of Goodman’s expansion plans , he said, and an effort to “take advantage of the significant opportunities the region has to offer.”

Goodman is an industrial property specialist. In Asia Pacific, it manages two unlisted funds; Goodman Australia Industrial Fund and Macquarie Goodman Hong Kong Logistics, which it has just taken full control of. It also manages a listed fund, the Goodman Property Trust.

In Europe, Goodman owned international property investment and fund management subsidiary Goldman Property Investors until May when it sold it to Aberdeen Asset Management for £109 million. Goodman Property Investors grew its platform in Europe by acquiring various industrial property businesses starting with Arlington Securities in 2005, and followed by Eurinpro International in May 2006, Akeler in November 2006 and Rosemound Developments in April 2007.

Macquarie’s private placement business has also helped Goodman raise funds.