AUCKLAND, AUSTRALIA-Australia’s global industrial property group Goodman has set up a joint investment vehicle with CB Richard Ellis Realty Trust to invest $480 million in logistics developments in continental Europe over the next three years. CB Richard Ellis Realty Trust will have an 80% stake in the fund, which will focus on opportunities in Germany, France and Benelux.
The fund will invest in pre-committed logistics development opportunities sourced through Goodman, although its Goodman European Logistics Fund will have right of first refusal over developments undertaken by the group. It will also acquire three German development assets from Goodman valued at $54 million Goodman and CBRERT are also setting up a similar co-investment vehicle for the UK with an investment target of $600 million for the initial three-year period.
Goodman says the funds will focus on high quality, pre-committed logistics development opportunities and ensure the group has a secure funding platform for its development business and alternative capital to maintain gearing at conservative levels. CEO Greg Goodman said the initiative is part of Goldman's strategy of building strategic relationships with leading global investor groups to match new third party capital with its development pipeline. CBRERT CEO Jack Cuneo said the relationship will enable the company to further diversify its investment portfolio.
Goodman has a $5.6 billion development pipeline in Europe and the UK, providing considerable opportunities to expand its existing operating platform. Across the region Goodman has total assets under management of $4.9 million, spanning 137 properties in 12 countries. Goodman's European Logistics Fund manages 82 logistics assets valued at $1.8 billion in continental Europe, while the group has a further $720 million of logistics assets and development land in the UK.
Goodman has expanded its European development pipeline in France, Germany, Hungary and Netherlands in recent months. At the end of May it agreed with discount supermarket chain LIDL to develop a 430,000-square-foot logistics facility at Chanteloup-les-Vignes to the west of Paris. It will be presold on a forward funding basis for $34 million. In early June it signed a preliminary agreement to buy 33 hectares in the new La Go
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