Goodman to increase Japan core fund to $600m

Goodman is seeking another $200 million for its open-ended Japan core fund.

Sydney-based logistics developer-cum-fund manager the Goodman Group is planning to launch another $200 million fundraising round for its Goodman Japan Core Fund (GJCF), which would bring the total equity of that fund to $600m, according to a firm statement.

This new round of fundraising comes at a time of strong support showed by Goodman’s investors for its activities in Japan. In addition to raising $100 million for GJCF, the firm and Middle Eastern sovereign wealth fund Abu Dhabi Investment Council also increased their jointly capitalized venture, Goodman Japan Development Partnership (GJDP), to $800 million. 

The equity of GJCF currently stands at $400 million. The following $200 million raising for GJCF is expected to begin sometime next month. It is understood that Goodman has already investors conducting due diligence. Existing investors in the fund are comprised primarily of European pension funds as well as Japanese institutional investors, and the logistics developer is understood to be hoping to draw capital from a combination of new and existing investors.

Those investors that sign up will gain exposure to a fund that has historically returned more than 10 percent.
The extra $200 million of equity would be used to fund the acquisition of three developments currently held by GJDP in Nagoya and Tokyo Bay, to add to GJCF’s current 11 properties. Two of the developments are expected to be completed in November of this year, while the third is slated for completion in February 2015, and all three are expected to be transferred to the core fund once completed.

This fundraising round is part of Goodman’s medium-term goal to grow GJCF’s total assets under management to $2.5 billion over the next three years. Approximately 10 percent of the fund’s total assets can be allocated to development. 

“Our strategy in Japan is to focus on selectively pursuing high quality opportunities in prime locations where we identify excess customer demand with limited competition,” Paul McGarry, chief executive of Goodman Japan, said in the statement. “The recent success of the capital raisings in both GJCF and GJDP demonstrate the support of our global capital partners for Goodman’s management platform in Japan.”