Goodman Group is raising A$4bn (€2.4bn) through a fully underwritten institutional placement to fund its pipeline of data centres and industrial development.
As well, the logistics giant has also issued a non-underwritten security purchase plan (SPP) for eligible securityholders to raise up to A$400m.
Goodman is expected to issue 119.4m new securities, representing about 6.2% of its total outstanding securities. The price is set at A$33.50 per security, a 6.9% discount from the closing price of A$35.98 on 18 February 2025.
Greg Goodman, Goodman’s group CEO, said: “The raising will help us further strengthen the capital structure of the group, providing flexibility in undertaking a large development programme, predominantly in data centre activity, to drive long-term sustainable growth.
“The escalating demand for data centres has created a step-change in the growth of our business. This is being fuelled by increasing cloud use, migration of data to the cloud, and AI and machine learning,” Goodman told analysts during the group’s result presentation.”
He said the firm is building into strong demand, primarily in high availability zones in Sydney, Melbourne, Los Angeles, Tokyo, Paris, Amsterdam and Hong Kong, adding that these developments will have an estimated end value of more than $10bn.
The group’s share of development cost over the next few years was expected to be A$2.7bn, the CEO said.
The group has already restructured its North American partnership platform when CPP Investments sold out its stake to Norges Bank Investment Management in December.
Goodman Group is currently in advanced negotiation with another capital partner to establish a second partnership in North America.
The CEO said the group was in discussion with an existing investor to form a new data centre partnership in Continental Europe during the first half of this year.
To read the latest IPE Real Assets magazine click here.
