Goodman forms global alliance with Malaysian pension giant

Sydney-listed industrial property specialist Goodman Group has formed a global relationship with Malaysian sovereign wealth fund Employees Provident Fund (EPF).

The alliance begins with an AU$400 mln (EUR 313 mln) investment to acquire an Australian portfolio of six stabilised logistics assets from Goodman Group and the funds it manages. The two partners have committed a combined AU$ 500 mln to the Australian market. Goodman will retain an interest in the portfolio, on an initial 40/60 basis, with EPF holding the majority share.

Goodman Group CEO, Greg Goodman said: 'Adding EPF to our global platform is another important step in the expansion of the Group's funds management platform. Major global investors continue to target high quality income producing investments in a structure that provides access to a specialist team with strong alignment. We look forward to expanding our relationship with EPF in the near future.'

Goodman will provide management services to the portfolio. The group is a developer, owner and manager of logistics and industrial space and fund manager with activities in Australia, New Zealand, Asia and Europe.

EPF is the largest pension fund in Malaysia with more than EUR 170 bn of assets under management at end-December 2011. However, the management feel it is underweight exposure to industrial and logistics real estate investment.

EPF's Deputy CEO (Investment) Dato' Shahril Ridza Ridzuan, said: 'EPF intends to increase its exposure to real estate, by investing with best in class property groups around the world. Our selection of Goodman as our global investment partner for logistics real estate was driven by their reputation, knowledge as a global sector specialist and high quality portfolio. Goodman's ability to demonstrate their alignment of interest by investing alongside EPF was a key differentiating factor.'