AI assistant
GOODMAN GROUP Capital/Financing Update 2005
64998_rns_2005-11-16_af2117e4-e35f-49ca-948c-2199deeeaf9d.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
ASX Release - Macquarie Goodman Group ("Macquarie Goodman")
Macquarie Goodman Finalises \$1 billion Wholesale Fund
Date: 17 November 2005 Release: Immediate
Macquarie Goodman is pleased to announce that it has finalised the establishment of the Macquarie Goodman Wholesale Fund ("MGWF" or the "Fund"). MGWF will initially own a portfolio of prime industrial real estate with an on-completion value in excess of \$1 billion making it the largest wholesale industrial property fund in Australia.
Macquarie Goodman identified an opportunity to create an industrial sector specialist fund to meet the increasing demand for direct property investment vehicles. MGWF will be Macquarie Goodman's primary Australian investment partner with Macquarie Goodman's ongoing Australian property investment exposure principally achieved via co-investment in MGWF.
Mr Gregory Goodman, Chief Executive Officer of Macquarie Goodman and Chairman of MGWF said, "We are delighted with the response from investors to the launch of the Fund. The support from large institutional property investors provides an excellent platform to grow the Fund and follows the Macquarie Goodman strategy of partnering with dedicated regional equity associates."
Macquarie Goodman Wholesale Fund
MGWF's initial portfolio consists of 32 industrial properties located throughout Australia's major industrial markets. On completion of contracted pre-committed developments, the portfolio is expected to grow to in excess of \$1 billion. The portfolio has been priced at independent valuation (the initial portfolio is detailed in the annexure attached).
In line with Macquarie Goodman's strategy of creating third party funds management businesses, MGWF will have a first right of refusal over Macquarie Goodman's Australian development pipeline and acquisitions sourced in Australia.
Macquarie Goodman initially sought to raise a minimum of \$371 million. However, reflecting the limited opportunities for institutional investment into the wholesale industrial property sector, applications were received several times in excess of the minimum raising. Consequently, Macquarie Goodman has increased the size of the offer and accepted total equity commitments of \$840 million, which is payable in two equal tranches in December 2005 and December 2006 respectively. A broad cross section of domestic and offshore institutions have committed to the Fund and Macquarie Goodman is retaining a minimum investment of 30%.
Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641: AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com
Macquarie Goodman
The Board of the Fund's responsible entity, Macquarie Goodman Wholesale Limited ("MGWL"), a wholly owned subsidiary of Macquarie Goodman, will be comprised of five directors with two Macquarie Goodman executives and three independent directors; Greg Goodman (Chairman), David van Aanholt (Executive Director), Peter Barnes (Independent Director), Ray Kellerman (Independent Director) and Stephen Taylor (Independent Director).
Macquarie Goodman would also like to announce the recent appointment of Richard Wilson who brings significant property and funds management expertise to his role as Fund Manager of MGWF.
Impact on Macquarie Goodman
The establishment of MGWF is consistent with Macquarie Goodman's strategy of creating third party funds management businesses. Macquarie Goodman has already successfully established property funds in New Zealand with the Macquarie Goodman Property Trust and in Singapore with A-REIT.
Macquarie Goodman's funds management business provides the capability to create. manage and grow new property funds for third party investors and provides Securityholders with stable income streams earned from these management activities.
MGWL will earn fund management fees for its role as manager of MGWF:
- Base management fee: 0.45% of average assets up to \$2 billion and 0.40% on $\bullet$ assets above \$2 billion; and
- Performance fee: 15% of out-performance above 10 year bonds + 3.5% pa. Total management fees are capped at 0.90% of gross assets per annum and any underperformance or excess out-performance is carried forward to future periods.
The creation of MGWF will result in a gain of approximately \$30 million on book value.
MGWL will receive cash proceeds of approximately \$420 million on 20 December 2005. This amount will initially be used by MGWL to retire existing debt facilities which will reduce gearing to the lower end of its stated target range of 35% - 40%.
Macquarie Bank Limited acted as financial adviser and sole lead manager in relation to the establishment of MGWF.
ga kale
$\sim 10^{-11}$
For further information, please contact Macquarie Goodman:
die kale
the Parties
Gregory Goodman Chief Executive Officer Tel: +61 2 9230 7400
Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641: AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com
ANNEXURE
MGWF INITIAL PORTFOLIO
1. Stabilised assets
| Property Asset type |
GLA | Book Value | |
|---|---|---|---|
| (sqm) | \$m | ||
| Chullora Business Park, 62 Hume Highway, Chullora (NSW) |
Business park | 45,730 | 65.2 |
| Reservoir Distribution Centre, 3 Davis Road, Wetherill Park (NSW) |
Warehouse / distribution centre |
49,292 | 52.1 |
| Portside Distribution Centre, 2 - 8 McPherson Street, Banksmeadow (NSW) |
Warehouse / distribution centre |
30,018 | 50.1 |
| St Peters Business Park, 9 Canal Road, St Peters (NSW) |
Business park | 21,795 | 43.3 |
| Cumberland Industrial Estate, 146 - 156 Warren Road, Smithfield (NSW) |
Industrial estate | 28.647 | 41.0 |
| Chullora Distribution Centre, 41 Roberts Road and 29 Wentworth Street, Chullora (NSW) |
Warehouse / distribution centre |
37,139 | 39.7 |
| Botany Bay Industrial Estate, 2 - 12 Beauchamp Road, Banksmeadow (NSW) |
Industrial estate 24,967 |
35.5 | |
| Westall Distribution Centre, 16 - 24 Westall Road, Clayton (Vic) |
Warehouse / 45,231 distribution centre |
35.0 | |
| Brisbane Gate Industrial Park, 400 Nudgee Road, Hendra (Old) |
Industrial estate | 44,101 | |
| Showground Business Park, 12 - 20 Anella Avenue, Castle Hill (NSW) |
Business park | 24,028 | |
| Crestmead Distribution Centre, Magnesium Drive, Crestmead (Old) |
Warehouse / distribution centre |
33,137 | 32.6 |
| Davis Distribution Centre, 31b - 34 Davis Road, Wetherill Park (NSW) |
Warehouse / $-22,556$ distribution centre |
26.5 | |
| Hampton Park Distribution Centre, South Gippsland Highway, Hampton Park (Vic) |
Warehouse / 33,910 distribution centre |
25.0 | |
| Riverside Centre, 148 James Ruse Drive, Parramatta (NSW) |
14,828 Industrial estate |
24.2 | |
| Ferntree Business Park, 310 Ferntree Gully Road, Notting Hill (Vic) |
Business park | 15,347 | 24.0 |
asx rel ease
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com
Macquarie Goodman
| Property | Asset type | GLA (sqm) |
Book Value \$m |
|---|---|---|---|
| Dandenong Industrial Estate, Princes Highway & Progress Street, Dandenong (Vic) |
Business park | 33,421 | 21.4 |
| Reserve Industrial Estate, 6 Hope Street, Ermington (NSW) |
Industrial estate | 12,889 | 21.0 |
| Holroyd Distribution Centre, 45 Britton Street, Smithfield (NSW) |
Warehouse / distribution centre |
17,053 | 18.3 |
| Port Wakefield Distribution Centre, 33 - 37 Port Wakefield Road, Gepps Cross (SA) |
Warehouse / distribution centre |
26,434 | 18.0 |
| Villawood Distribution Centre, 27 Llewellyn Avenue, Villawood (NSW) |
Warehouse / distribution centre |
15,566 | 17.9 |
| Ferntree Industrial Estate, 296 Ferntree Gully Road, Notting Hill (Vic) |
Industrial estate | 21,269 | 17.0 |
| Altona North Industrial Estate, Toll Drive, North Altona (Vic) |
Industrial estate | 15,474 | 14.5 |
| Link Business Park, 22 Giffnock Avenue, North Ryde (NSW) |
Business park | 5.563 | 14.5 |
| Citiport Industrial Estate, 17 Sugarmill Road, Eagle Farm (Old) |
Industrial estate 14,531 |
14.3 | |
| Citylink Business Park, 854 - 858 Lorimer Street, Port Melbourne (Vic) |
Business park 5,526 |
11.4 | |
| Woodlands Distribution Centre, 151 - 155 Woodlands Drive, Braeside (Vic) |
Warehouse / 11,129 distribution centre |
11.3 | |
| Wingfield Distribution Centre, Johansson and Rosburg Roads, Wingfield (SA) |
Industrial estate | 12,518 | 9.1 |
| Gippsland Distribution Centre, 31 - 49 Nathan Road, Dandenong (Vic) |
Warehouse / distribution centre |
10,457 | 7.5 |
| Kerry Business Park, 146 Kerry Road, Archerfield (Old) |
Business park | 3,010 | 4.8 |
| Total | 675,566 | 762.0 |
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com
Macquarie Goodman
2. Development assets
| Property | Asset type | Expected GLA (sqm) |
Land acquisition price \$m |
On completion value \$m |
|---|---|---|---|---|
| Edinburgh Distribution Centre, Edinburgh Park (SA) |
Warehouse / distribution centre |
64,725 | 129.5 | |
| M7 Business Hub, Eastern Creek (NSW) |
Warehouse / distribution centre |
75,530 | 120.7 | |
| Dandenong Industrial Estate, Princess Highway & Progress Street, Dandenong (Vic) |
Business park | N/A | 84 | |
| Campbellfield Distribution Centre, National Boulevard, Campbellfield (Vic) |
Warehouse / distribution centre |
28.950 | 4.3 | |
| Kerry Business Park, 146 Kerry Road, Archerfield (Qld) |
Business park | 17.760 | 2.7 | |
| Altona North Industrial Estate. Toll Road, North Altona (Vic) |
Industrial estate | 12,180 | 2.0 | |
| Total | 199,145 | 17.4 | 250.2 |
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com