I thought I would post this one as it gives an indication of...

I thought I would post this one as it gives an indication of potential earnings from the deal announced.


CB Richard Ellis Realty Trust commits $1.3bn to Goodman projects

Florence Chong From: The Australian June 12, 2010

US-BASED institutional investor CB Richard Ellis Realty Trust has committed $1.3 billion to invest in European projects being developed by the Goodman Group.

Some pound stg. 400 million ($696m) would be allocated to a British investment vehicle while the remaining E400m ($575m) would going to a European trust.

Goodman will have a 20 per cent stake in each fund.

Goodman chief executive Greg Goodman said negotiations were under way for the projects, some of which were now under construction, to be placed into these trusts.

The Goodman Group has about $6.5bn of development projects located mainly in the largest economies in Europe, particularly in Germany and France, and in Britain.

Mr Goodman said there was dislocation and concern in Europe, but for an investor there were real opportunities .

The group had both the capital and the confidence of its investors to take advantage of these opportunities as they arise, he said.

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"People see a bit of bottom-of-the-cycle opportunities," he told The Weekend Australian from London. "There is a lot of capital around the world looking for such opportunities.

"We are well positioned to bring them those opportunities."

Mr Goodman, who was calling on major European investors this week, said his group intended to raise a further $1bn over the next 12 months to support its projects.

"We are a survivor and a good franchise. Investors can see that we have a good global platform," he said.

Commenting on the deal, Goldman Sachs JB Were's head of A-REITs research, Simon Wheatley, said it would imply $120m-$180m total gross profit over the three years for the group.

Mr Wheatley estimated that it could contribute $58m to the group's pre-tax development earnings for 2010-11.

Goodman securities closed 0.5c higher at 66c.