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Goodman Australia Industrial Fund acquires Sydney Corporate Park for $343 million

Friday, 6 December 2013

Goodman is pleased to announce that Goodman Australia Industrial Fund (GAIF) has acquired Sydney Corporate Park in Alexandria from Rathdrum Properties Pty Ltd for $343 million, building on Goodman’s strategic presence in the South Sydney market.

Jason Little, General Manager Australia said, “We are pleased to be acquiring this significant South Sydney property from the Hannan Family. We view Sydney Corporate Park as a strategic long-term asset for the GAIF portfolio, which presents an exciting opportunity to take advantage of the property’s existing infrastructure and to add value through further site improvements. We are well positioned to deliver this, utilising Goodman’s asset management and development expertise to attract additional quality customers and delivering long-term value for GAIF’s investors.”

Sydney Corporate Park is a 14.4 hectare site situated in South Sydney’s industrial precinct. One of the largest single contiguous land parcels in the area, the site is strategically located at the southern end of O’Riordan Street and bounded by Bourke Road and Doody Streets. The property currently comprises a mix of industrial and business space, accommodating over 80 customers and a daily workforce in excess of 3,500 people.

Michael Hannan, Executive Chairman, Rathdrum Properties said, “The Hannan family is very proud of what has been achieved in the development of Sydney Corporate Park since acquiring the original site in 1985. For Sydney Corporate Park to have been awarded the Best Corporate Park in Australia in 2012, was recognition by the Property industry of what has been achieved under the period of our ownership.

Importantly, the divestment will facilitate the process of generational change for the Hannan family and provide the catalyst for fifth generation family members already in the business to influence the future direction of the Group. We remain significant investors in commercial and industrial property and will continue to pursue new property related opportunities.”

In a separate transaction, GAIF has acquired a site in Rosebery for $37.4 million. The 1.98 hectare site is zoned industrial and comprises three buildings with a total lettable area in excess of 19,600 sqm.

The Sydney Corporate Park and Rosebery acquisitions consolidate Goodman’s leading presence in the South Sydney industrial market, and increases the total South Sydney portfolio to more than $2.1 billion.

Greg Goodman, Goodman’s Group Chief Executive Officer commented, “The two acquisitions announced today are consistent with Goodman’s strategy of selectively pursuing quality growth opportunities and reflect the significant activity that Goodman is currently experiencing across its Australian business, driven by our access to third party capital, a development book of over $700 million, and robust underlying property fundamentals.”

In recent days, GAIF also exchanged on the sale of Forrester Distribution Centre at St Marys in Western Sydney, in line with its active asset management strategy.