Goodman and GPT seek to improve capital positions

Goodman Group, the international logistics and business park group, is poised to make an announcement on what the company described as 'capital management initiatives'. Trading in the company's shares was halted on the Australian Stock Exchange on Friday pending the announcement.

The listed property trust, which has a market capitalisation of A$1.7bn (EUR 838 mln), said the suspension would remain in place until the announcement was made some time before the market opens on Tuesday 28 October. Goodman's share price stood at A$6.90 a year ago but has fallen steadily since. In the last week before Friday's suspension the share shed 38% from A$1.61 to A$1.

In a statement to the stock exchange about its shares, the company said: 'Goodman believes that the price may have been affected by recent events within the property sector generally, both domestically and internationally.'

'Goodman is currently reviewing capital management initiatives and other transactions that currently remain incomplete and confidential. Goodman is not yet in a position to announce these initiatives and accordingly has requested a trading halt pending finalisation of these matters'.

Meanwhile GPT Group, the Australian property trust that acquired European property investment company Halverton three years ago, announced the completion on Friday of a A$1.3 bn Institutional Entitlement Offer. The company said the net proceeds from the offer will be used in conjunction with the issue of $250 mln of Exchangeable Securities to repay debt and significantly 'de-leverage GPT's balance sheet'.

Babcock & Brown, which has a European property partnership with GPT, is reportedly in talks with various parties, including private equity firms, about forming a 'strategic relationship' to strengthen its position.