Goodman Group has announced that it has entered into an agreement with California-based, Birtcher Development and Investments (Birtcher), focused on the development of, and investment in, prime quality logistics and industrial facilities in key locations across North America.
Additionally, Goodman is in final stages of due diligence with regard to a capital partnership targeting approximately US $800 million (approx. 630 million) of equity commitments.
Strategic rationale
Goodman's Group Chief Executive Officer, Greg Goodman said, "This announcement reinforces Goodman's position as a leading global logistics property group. With AU $19 billion (US $19 billion) of assets under management throughout Asia Pacific and Europe, our entry into North America is a logical step in the expansion of our operating platform to service our global customers and equity partners in the world's largest logistics and industrial market.
"Over time we also see North America growing to be one of Goodman's largest markets in terms of assets under management."
Welcoming the announcement, Danny Peeters, CEO Goodman Continental Europe said: "The decision to enter North America, the biggest industrial market, is very good news for Goodman in Europe. It will allow us to serve our customers in the US, while also giving us a platform to speak to our US-based customers to support them in Europe.
"The fact that Goodman is now present in Australia and New Zealand; Europe; Asia and North America is a sign of our strength and a signal to the market of our robust financial health."
Goodman North America Partnership
Goodman is establishing a new North American logistics and industrial partnership (GNAP), to provide funding to invest in the properties developed and sourced by the Group's North American platform. Initial equity commitments will be approximately US $800 million (AU $800 million).
"The investment strategy for GNAP will be to target investment in logistics and industrial property in key North American markets, focusing initially on development led opportunities and stabilized asset acquisitions to be considered over time in line with market conditions," said Goodman.
Goodman is in final stages of due diligence with a major capital partner. Commercial terms have been agreed and documentation is anticipated to be completed shortly.
Management company
The management company combines Goodman's global expertise as a leading specialist fund manager of industrial property and business space, extensive global customer and capital partner relationships, with the strength of Birtcher's local knowledge, long established track record and reputation in North America.
Goodman's Group Chief Executive Officer, Greg Goodman said, "A key success factor to entering a new market is ensuring you have the requisite local knowledge and expertise. In this regard, we are delighted to have sourced the local expertise of such a highly regarded property group as Birtcher to drive the expansion of our international operating platform into key logistics markets in North America.
"This local expertise will be supported by a group of Goodman's international employees who will be joining the management group to help provide operational expertise and compliance."
Birtcher President and CEO, Brandon Birtcher commented, "This represents a new chapter in Birtcher's 73-year history and we are excited by the tremendous opportunity that comes through working as part of one of the world's leading industrial property groups. We look forward to utilising the wealth of our local market knowledge and relationships, together with our considerable development and investment experience to drive the growth of the company."
Investment strategy
A targeted geographic investment strategy will be implemented to secure opportunities, by focusing on developing and investing in A-grade logistics and industrial facilities A development-led approach will initially be pursued to maximize returns given the under supply of quality
