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Malaysia’s Employees Provident Fund selects Goodman for global logistics relationship

Tuesday, 05 June 2012

Goodman Group (Goodman or Group) and the Employees Provident Fund (EPF) are pleased to announce the establishment of a global relationship commencing in Australia, which will invest in high quality, stabilised logistics assets.

The key points relating to the global relationship are:

  • Investment in an initial Australian portfolio of circa A$400 million, comprising six stabilised logistics assets sourced equally from the Group and its managed funds;
  • A combined equity commitment for Australia of A$500 million; and
  • Goodman will retain an interest in the portfolio, on an initial 40/60 basis, with EPF holding the majority share.

Goodman Group CEO, Greg Goodman said: “We are delighted to be establishing this new relationship with EPF. Adding EPF to our global platform is another importa nt step in the expansion of the Group’s funds management platform. Major global investors continue to target high quality income producing investments in a structure that provides access to a specialist team with strong alignment. We look forward to expanding our relationship with EPF in the near future.”

Goodman will provide management services to the portfolio on terms generally consistent with arrangements across its existing funds management platform.

As at 31 December 2011, EPF had assets under management in excess A$ 150 billion, with an underweight exposure to industrial and logistics real estate investment. The relationship with Goodman provides EPF with the opportunity to invest in prime leading, specialist industrial property group.

EPF’s Deputy CEO (Investment) Dato’ Shahril Ridza Ridzuan, said: “EPF intends to increase its exposure to real estate, by investing with best in class property groups around the world. Our selection of Goodman as our global investment partner for logistics real est ate was driven by their reputation, knowledge as a global sector specialist and high quality po rtfolio. Goodman’s ability to demonstrate their alignment of interest by investing alongside EPF was a key differentiating factor.”

As at 31 December, Goodman had a development book of A$2.1 billion, with total assets under management of A$18.9 billion.

“The relationship enables the Group and our managed funds to recycle assets to fund future development commitments and other growth opportunities in new markets, while retaining management of the assets.” Mr Goodman concluded.