GMT
03/11/2014 14:29
JOINTV
REL: 1429 HRS Goodman Property Trust
JOINTV: GMT: GMT Partners with Singapore's GIC
Goodman (NZ) Limited, the Manager of Goodman Property Trust ("Trust" or
"GMT"), has announced the introduction of GIC as a new capital partner in an
expanded joint venture investing in Auckland's Viaduct Quarter. This is GIC's
first real estate investment in New Zealand.
GIC, Singapore's sovereign wealth fund, is partnering with GMT, to co-invest
in Auckland's rapidly developing Viaduct Quarter. The joint venture, which
includes GMT's existing Viaduct property interests, has a mandate to grow to
NZ$500 million over time.
The partnership will initially own a portfolio of assets valued at NZ$313
million. GIC will acquire a 49% interest in these assets while GMT will
retain a 51% share. All future investments will be undertaken on the same
basis.
Keith Smith, Chairman of Goodman (NZ) Limited said "The benefits of GMT's
close relationship with Goodman Group, one of the world's largest integrated
property groups, have facilitated the introduction of GIC into the New
Zealand market and a broadening of GMT's investment strategy in the Viaduct".
Greg Goodman, Chief Executive Officer of Goodman Group said "We are pleased
to be partnering with GIC, one of the world's largest investment funds, and
look forward to extending our involvement in the regeneration of Auckland's
Viaduct Quarter."
Goh Kok Huat, President of GIC Real Estate, said "As a long-term investor,
GIC looks to establish strategic partnerships with leading market players.
Goodman has strong asset management expertise and has a good pulse on the New
Zealand market. We believe there will be good investment opportunities that
allow the joint venture to grow further, particularly in the Viaduct
Quarter."
A summary of the initial transaction, which remains subject to certain
conditions including Overseas Investment Office approval, is included in the
Appendix to this announcement.
Investment Strategy
John Dakin, Chief Executive Officer of Goodman (NZ) Limited said "The Viaduct
Quarter is a proven investment location that presents exciting new
opportunities with local government initiatives and private development
transforming the former marine and industrial areas into a world-class,
mixed-use waterfront precinct."
GMT identified the Viaduct Quarter as a strategic investment location over
eight years ago, acquiring the Air New Zealand building and a 50% interest in
Viaduct Corporate Centre in 2006. These initial investments were extended
with the purchase of the new Fonterra building currently being developed by
Goodman Group and Fletcher Building.
The investment strategy of the new partnership will continue this commercial
focus, building a portfolio of high quality, campus style office properties,
leased to major customers on long term leases.
Through its relationship with Goodman Group, the joint venture has options to
purchase future office developments in the Viaduct Quarter and subject to
meeting strict investment hurdles, it is anticipated that the partnership's
property portfolio could grow to NZ$500 million over time.
Benefits to GMT
The new partnership is expected to provide a range of benefits for GMT
including,
1. Capacity to reinvest in a growing market segment
2. Access to new office stock in a progressive location
3. Increased asset and customer diversity
4. Greater mix of ownership tenures in an expanded portfolio
John Dakin, said, "The introduction of a like-minded partner gives GMT the
capacity to expand its investment in the Viaduct Quarter, enhancing the
overall portfolio, without the requirement for any significant new funding."
GMT's gearing reduces as a result of the initial transaction and the Trust
has reaffirmed its FY15 distributable earnings guidance, of 9.1 cents per
unit before tax. Forecast cash distributions of 6.45 cents per unit, are also
unchanged.
Introducing GIC
GIC is a leading global investment firm with well over US$100 billion in
assets under management. Established in 1981, the firm manages Singapore's
foreign reserves and is uniquely positioned for long-term and flexible
investments across a wide range of asset classes, including real estate,
private equity, equities and fixed income. GIC has investments in over 40
countries and has been investing in emerging markets for more than two
decades. Headquartered in Singapore, GIC employs over 1,200 people across 10
offices in key financial cities worldwide. For more information:
www.gic.com.sg.
For further information please contact:
Goodman
John Dakin
Chief Executive Officer
Goodman (NZ) Limited
(09) 375 6063
(021) 321 541
Andy Eakin
Chief Financial Officer
Goodman (NZ) Limited
(09) 375 6077
(021) 305 316
GIC
Jennifer Lewis
Tel: +65 68898383
Mobile: +65 98266198
Email: [email protected]
Mah Lay Choon
Tel: +65 68896841
Mobile: +65 98389425
Email: [email protected]
End CA:00257152 For:GMT Type:JOINTV Time:2014-11-03 14:29:44
