Goodman launches new fund with CPPIB
Goodman Group (GMG) and the Canada Pension Plan Investment Board (CPPIB) launched a new fund known as the Goodman Australia Development Fund (GADF). Goodman said the new fund would have an initial equity commitment of $250 million with a target gross asset value of approximately $400 million.
The group said the Fund would be established on an 80/20 basis, with CPPIB holding the majority stake.
Goodman said GADF would be established and seeded with the acquisition of Goodman’s Kmart development in Melbourne for a total consideration of $66.3 million.
Goodman CEO, Greg Goodman, said the fund was the group’s second with CPPIB following the China fund announced last August.
“The new fund will focus on acquiring a range of high quality pre-committed development opportunities in Australia and importantly secures a funding platform for our Australian development business over the next two years,” Mr Goodman said.
The group said GADF would be seeded through the acquisition of the 76,000 square kilometre distribution centre currently being developed for Kmart in Melbourne.
The development is to be acquired by the Fund.
Goodman said the transaction is subject to the approval of the Foreign Investment Review Board.
As at 1023 AEST, Goodman shares were down 0.5c to 66.5c.
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