goodman sticks to its guns

Goodman Sticks to its GUNS

Robert Harley writing in todays AFR says “Goodman Sticks to its GUNS”
The likes of Michael West , Adele Ferguson, and Michael Pascoe are adamant that the Goodman Business Model is broken. They say so with not a little delight. What benefit this is to them is not clear to me.
Anyway the events of this week shows us that “Goodman Sticks to its GUNS”
There is NO RETREAT. Developments in the UK, Europe , Australia/NZ, and Asia are on track, and in fact there will be further inroads into China, Canada and possibly the US.
Whereas GPT is licking its wounds and returning to the tent of Austalia under the banner, “ Better not BIGGER”….BB does not mean Babcock and Brown anymore.
Whereas GPT have changed leaders and now business plans, GMG is solidly under the direction of Greg Goodman.
His holding in the company is decimated. I think it is now only 3%. But he is only 47 and there is plenty of time to build back up again.
GMG has some 9 funds all involved in some way in industrial property. The look through gearing in these will be of the order of 27%, so they will be able to get on with the business of scouring the world looking for development opportunites knowing that FINANCE is not really a problem with CIC and the Canada Pension Plan in the wings.
Industrailly the world is a war zone. And it is a war not yet over in which there a few survivors.
GMG knows now it has reduced competition in this space. And with the combined backing of CIC and CPP GMG is a mighty force to be reckoned with.
Michael Pascoe calls CIC a lender of last resort. Michael you are writer of last resort.
Dilution. Yes. NTA, who knows. Market Caps, who is to know really. GMG IS NOT A SELLER.
The much decried MQG, and earlier CIC deals were a BRIDGE TO EQUITY.
And this week we have seen where this bridge leads to…………..SURVIVAL and a WORLD OF LESS COMPETITION for this INDUSTRIAL PROPERTY BEHEMOTH