Sydney-based logistics developer-cum-fund manager, the Goodman Group, has split up its Brazilian joint venture with local developer WTorre, the firm said Thursday. The firms set up a 50:50 joint venture called WTGoodman in November 2012 to develop logistics and industrial properties throughout Brazil.
Going forward, Goodman will have ownership of the group’s operating management platform and 905,500 square feet of stabilized assets in Rio de Janeiro and Sao Paulo, as well as a 203,000 square foot, pre-leased development for a US retailer in Betim. WTorre will take the rest of the joint venture assets, which the firm said largely comprises cash and development land.
The financial terms of the partnerships dissolution were not divulged.
Cesar Nasser, who was appointed chief executive of the joint venture when it was formed, will remain with the platform under Goodman Brazil, the re-named entity. Goodman’s original capital commitment of R$340 million (€83 million; $93.9 million) will remain unchanged, the firm said.
“We have built a stable operating platform in Brazil over the last three years and the opportunity to have complete autonomy in Brazil has always been contemplated by the Group,” said Danny Peeters, Goodman’s chief executive, in a statement Thursday. “We acknowledge that Brazil is currently going through a difficult economic period and we will maintain a prudent approach to investment. However, Goodman maintains its long term commitment to the Brazilian market, given its growing middle class and the structural changes which are occurring in the logistics market.”
In addition to the former WTGoodman, Goodman has partnered with sovereign wealth funds and public pension plans around the world for local joint ventures. One recent venture came in October, when Goodman teamed up with the Canada Pension Plan Investment Board and Dutch pension manager APG Asset Management to form a £1 billion (€1.3 billion; $1.5 billion) UK logistics partnership. The joint venture – called the Goodman UK Logistics Partnership – has a flexible investment strategy, which will allow for development, value-add and core investment in UK logistics.
Goodman currently has A$33 billion (€22.3 billion; $25 billion) in assets under management, according to Thursday’s statement.