Macquarie Goodman is set to take on the European property market with the purchase of two properties in France for $91.6 million.
Macquarie Goodman’s European subsidiary Arlington bought the properties, which will form part of the seed portfolio for a proposed logistics fund in the 2007 financial year.
The properties are currently under development and upon completion will reflect an initial yield in excess of 8% and comprise a total lettable area of 87,793 sqm.
The properties are located in the Western European logistics heartland of Lyon and Lille.
The proposed European logistics fund follows the success of the C€LOGIX Property Fund, which was Arlington’s first European logistics vehicle.
This vehicle has a gross asset value of $660 million and is fully committed and invested.
Macquarie Goodman’s chief executive Gregory Goodman said the properties are well located and will form a solid platform for the proposed fund.
“We also continue to assess a number of opportunities to expand the initial seed portfolio, adding to the €1 billion in funds currently under management in Europe,” he added.
The acquisitions will be funded via existing debt facilities.
Meanwhile, across the continent in Asia, the group successfully launched the $850 million Macquarie Goodman Hong Kong Wholesale Fund and in New Zealand, the group have completed the sale of a portfolio to Macquarie Goodman Property Trust.
The initial portfolio consisted of seven warehouse/distribution and logistics properties located in key Hong Kong industrial submarkets.
“Our carefully planned approach has proven fruitful with the successful launch of our first wholesale fund in Asia. We are pleased with the strong response from the global investment community and continue to see repeat investment activity in our managed funds from global institutions seeking exposure to high quality industrial and business park assets,” Goodman said.
In Singapore, Ascendas Real Estate Investment Trust delivered its full year results on April 13, 2006. In another positive year, A-REIT undertook the acquisition of 28 properties for a total consideration of $S639 million taking its total gross asset value to $S2.8 billion, which help it deliv a 22.2% increase in distributions to its unitholders.
Importantly, A-REIT has introduced development capabilities through the precommitment of two facilities under the Warehouse Retail Scheme, with a total end value of $S128 million. These capabilities provide an additional avenue of growth to facilitate the further expansion of A-REIT.
In New Zealand, Macquarie Goodman Property Trust bought eight properties totalling $267.4 million from Macquarie Goodman.
The acquisition increases MGP’s total assets to over NZ$1 billion lifted its status to the second largest listed property trust and one of the top 25 entities on the New Zealand Exchange.
During the first quarter of the year, the group completed $151 million in development product in Australia and New Zealand and committed to $157 million in new development projects in Australia and New Zealand.
In addition, the group secured 49,937 sqm of new leasing transactions across its portfolio reflecting a 3.1% increase in previous passing net annual rentals.
“The positive start to the year across all business platforms positions Macquarie Goodman for a successful 12 months. Importantly, we have achieved significant milestones in New Zealand and Hong Kong as well as making excellent progress on our next funds management initiative in Europe.
“The Australian portfolio remains robust with strong demand for well located industrial and business space together with continuing demand from our customer base for new development projects,” Goodman concluded.
By Adam Parsons
