Goodman European Logistics Fund (GELF)announced that it has raised €550 million (approx. $775 million) of new equity, completing an equity raising process which received total demand in excess of €900 million (approx. $1.3 billion).
The majority of the equity was raised via a rights issue to existing investors, with additional equity raised in response to the strong demand from new investors. Separately, to facilitate the excess demand, Goodman Group will sell down part of its holding in GELF, which will result in Goodman Group holding an investment of approximately 20% in GELF on completion of the transaction.
Greg Goodman, Goodman Group CEO said: “We are very pleased with the strong support from investors. It is a clear endorsement of GELF’s offering and corporate governance model. The overwhelming demand for the equity raise reflects the Fund’s high quality portfolio and the attractiveness of the European logistics property market to large institutional investors.”
Emmanuel Van der Stichele, Fund Director, Goodman European Logistics Fund (GELF) said: “With its pan-European diversified portfolio, proven strong operational track record and access to new prime logistics assets, GELF presents an exceptional opportunity to invest in the European logistics real estate market.”
The GELF equity raising follows the completion of the Fund’s successful €500 million inaugural Eurobond issuance in March of this year, bringing total new capital raised in the first half of the 2013 calendar year to over €1 billion. GELF is now well positioned for future growth with over €800 million of capacity to invest.
The success of the equity raise will further underpin GELF’s strong position as a leading logistics fund in Europe and ensure it continues to take advantage of a range of active opportunities.
“We intend to use the proceeds to further strengthen our market position and the ongoing diversification of our portfolio, with a focus on prime assets in key European logistics locations.” Mr Van der Stichele added.
GELF is Goodman Group’s largest European real estate investment vehicle. The €1.9 billion pan-European fund has a portfolio of 95 assets in 11 countries. As at 31 March 2013, GELF’s occupancy rate stood at 97%. The portfolio has a weighted average lease expiry (WALE) to first break of 4.9 years.