Goodman sets up €500m German JV with Malaysia's EPF

International logistics group Goodman has launched a new joint venture with Malaysia’s Employees Provident Fund to invest up to €500 mln in the German logistics property market.

The partnership, dubbed KWASA Goodman Germany (KGG), has an initial equity commitment of €500 mln and has already acquired €213 mln of assets in Germany. It was established as a 70/30 joint venture with EPF holding the majority stake.

'We continue to work hard to build on our extensive capital partner relationships and this was again reflected in the magnitude of the equity inflows achieved during the quarter,' commented CEO Greg Goodman.

The seed portfolio includes seven properties, three of which were sourced from the group for €105 mln and the remaining four from Goodman European Logistics Fund (GELF) for €108 mln.

The German venture follows the launch in July 2012 of a partnership between Goodman and EPF to invest at least A$500 mln in Australia. As with the European structure, EPF retained a majority stake of 60% in the Australian joint venture with Goodman retaining a 40% stake.