Goodman Group, the Sydney-listed logistics developer-investor, has teamed up with CB Richard Ellis Realty Trust for a EUR 880 mln investment drive in logistics assets in the UK and Continental Europe.
Goodman Group, the Sydney-listed logistics developer-investor, has teamed up with CB Richard Ellis Realty Trust for a EUR 880 mln investment drive in logistics assets in the UK and Continental Europe.
Under the plan, two co-investment vehicles will invest in pre-committed logistics development opportunities sourced through Goodman and will be funded on an 80/20 basis, with CB Richard Ellis Realty Trust holding the majority share.
The UK co-investment vehicle will target a total investment of £400 mln (EUR 483 mln) over an initial three-year investment term. This includes the acquisition of two UK assets from Goodman for £22.4 mln. The vehicle will have the right of first refusal over logistics properties developed by Goodman in the UK.
The European co-investment vehicle will target a total investment of EUR 400 mln over an initial investment term of three years, focusing on the core Western European markets of Germany, France and Benelux.
Its mandate includes the acquisition of three German development assets from Goodman with a total value on completion of EUR 45.1 mln. Two of these assets were acquired upon establishment of the co-investment vehicle, and the third will be acquired upon completion of the asset.
Goodman European Logistics Fund (GELF) has a right of first refusal over developments undertaken by Goodman. The co-investment vehicle will have a right of second refusal, which it will be able to exercise where developments offered to GELF have been declined.
Goodman CEO Greg Goodman said: 'This initiative will allow us to continue to build momentum across our European platform. Our focus remains on building strategic relationships with leading global investor groups, such as CB Richard Ellis Realty Trust, to deliver on our key objective of matching new third party capital with Goodman’s development pipeline.'
CB Richard Ellis Realty Trust is a real estate investment trust (REIT), backed by CBRE Investors, that invests in income-producing properties in major metropolitan areas of the US, Western Europe and Asia.
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