Sydney-listed Goodman Group and a consortium of its three global investors have made a recommended cash offer for 100% of the ordinary units in ING Industrial Fund (IIF).
Sydney-listed Goodman Group and a consortium of its three global investors have made a recommended cash offer for 100% of the ordinary units in ING Industrial Fund (IIF).
IIF manages a portfolio of prime logistics assets valued at about EUR 1.8 bn (AUD 2.5 bn). There are 60 properties in total; 44 in Australia and 16 in Europe. The European properties in Germany, Spain and Belgium are valued at EUR 200 mln.
The consortium, led by Goodman, consists of Canada Pension Plan Investment Board (CPPIB), All Pensions Group (APG) of the Netherlands and China Investment Corporation (CIC). Goodman said this week that the consortium has obtained binding commitment letters from a syndicate of banks for a new AUD 1.1 bn (EUR 800 mln) debt facility.
Kevein McCann, independent chairman of ING Management Limited, sent a letter to IFF unitholders on Tuesday recommending they accept the offer, in the absence of a superior proposal and subject to an independent expert concluding that the scheme of arrangement with the Goodman consortium is in the best interests of the unitholders.
If the offer is approved, the consortium will acquire the units through a newly established investment vehicle, GTA. GTA will be an unlisted, special purpose investment vehicle with a mandate to hold the IIF portfolio and enhance it by developing IIF's existing development pipeline. Goodman will be appointed as the fund, asset and property manager.
The Goodman consortium first approached IFF in October 2010 and made a revised offer on 23 December following the completion of due diligence.
