Goodman Australia Industrial Fund (“GAIF” or the “Fund”), Australia’s largest wholesale industrial real estate investment vehicle, will launch a capital raising following over $400 million of conditional equity commitments from existing and new investors.
GAIF has recently completed a number of successful initiatives designed to secure its longer- term investment outlook including:
- 12 new developments secured in FY2012 totalling over 130,000 sqm, with an end value of $247 million, a WALE of 10.7 years and 8.4% yield on cost;
- Acquisition of 10 assets with a total combined value of $200 million, with significant value- add potential through active asset management;
- $180 million sale of four assets to Malaysia’s Employees Provident Fund; and
- Debt platform repositioned into the debt capital markets to provide a long-term and flexible structure complementary to the size and quality of the Fund.
GAIF is well positioned to actively manage its portfolio and benefit from the positive outlook and significant opportunities in the Australian industrial sector. The Fund’s strong market position coupled with the positive outlook for the industrial property sector, has facilitated GAIF holding discussions with a number of existing and new investors regarding a proposal (the “Proposal”) to raise new capital, provide liquidity to some investors and extend the life of the Fund for a new term. As a result of these discussions, GAIF has to date received over $400m of conditional equity commitments, which is expected to increase further.
Greg Goodman, Chairman of GAIF said, “This is a major opportunity to expand GAIF’s capital base, enhance the Fund’s terms, market position and investment returns. The new committed equity demonstrates the strong investor demand that exists and uniquely positions GAIF to take advantage of the active opportunities currently available in the Australian industrial sector. These include recent acquisitions and the continued progress of the Fund’s existing development pipeline.”
Investor discussions are continuing, with a view to completing the capital raising by the end of the year.