Goodman takes full ownership of Brazilian platform

Goodman Group has taken full ownership of its industrial real estate platform in Brazil.

The Sydney-headquarted logistics specialist has ended its joint venture with local company WT Torre, securing 100% of the operating management platform and assets worth approximately R$600m (€143m).

Goodman’s original capital commitment of R$340m remains unchanged as a result of the new ownership structure. WT Torre will retain 100% ownership of remaining joint venture assets, comprised predominantly of cash and development land.

Goodman, which counts some of the world’s largest pension and sovereign wealth funds as its capital partners, can be expected to attract a global investor or investors to take a strategic stake in its Brazilian business. The AUD33bn (€22.4bn) group, founded by Greg Goodman, has partnerships with the Canada Pension Plan Investment Board (CPPIB); the  Netherlands’s APG, Abu Dhabi Investment Authority (ADIA) and Malaysia’s Employees Provident  Fund (EFP), among others.

Three years after entering the Brazilian market with WT Torre, Goodman now owns 100% of the operating management platform and stabilised assets in Rio de Janeiro and San Paulo.

Sources told IPE Real Estate that the assets present an opportunity for a global investor seeking entry into the Brazilian market.

In a statement to the Australian Stock Exchange, Danny Peeters, executive director at Goodman, said the opportunity to have complete autonomy in Brazil had always been contemplated.

The Brazilian business will now be developed as part of Goodman’s global brand, and will be strategically aligned with the group’s platform covering 16 countries.

“We acknowledge that Brazil is currently going through a difficult economic period and we will maintain a prudent approach to investment,” Peeters said.

Funding for future expansion of the platform in Brazil is expected to be in line with the group’s global capital partnering approach, the company said.

Industry sources said that logistics is currently one of the most keenly sought-after real estate asset classes, with many large cash-rich investors seeking to gain exposure.

In December, CPPIB injected US$1bn (€884m) of fresh capital into its Chinese joint venture Goodman China Logistics Partnership, with the Australian group contributing US$250m to expand the portfolio.

The transaction came two months after the launch of a £1bn (€1.27bn) UK logistics platform through a partnership between Goodman, CPPIB and APG.

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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