Goodman establishes A$1.3 billion relationship with CB Richard Ellis Realty Trust in UK and Europe through two new Co-Investment Vehicles

By Goodman Group, PRNE
Thursday, June 10, 2010

HONG KONG, June 11, 2010 - Goodman Group (Goodman or the Group) today announced the establishment of
two new co-investment vehicles (the Co-Investment Vehicles or Co-Investment
Vehicle) with CB Richard Ellis Realty Trust in the United Kingdom (UK) and
Europe. The Co-Investment Vehicles will invest in pre-committed logistics
development opportunities sourced through Goodman and will be funded on an
80/20 basis, with CB Richard Ellis Realty Trust holding the majority share.

The UK Co-Investment Vehicle will:

    + Target a total investment of 400 million pounds (A$696 million) over an
      initial investment term of three years
    + Include the acquisition of two UK assets from Goodman for a total
      consideration of 22.4 million pounds (A$39.0 million)
    + Have a right of first refusal over logistics properties developed by
      Goodman in the UK

The European Co-Investment Vehicle will:

    + Target a total investment of 400 million euro (A$575 million) over an
      initial investment term of three years, focusing on the core Western
      European markets of Germany, France and Benelux
    + Include the acquisition of three German development assets from the
      Group with a total value on completion of 45.1 million euro (A$64.9
      million). Two of these assets were acquired upon establishment of the
      Co-Investment Vehicle, and the third will be acquired upon completion of
      the asset.
    + Goodman European Logistics Fund (GELF) has a right of first refusal
      over developments undertaken by the Group. The Co-Investment Vehicle
      will have a right of second refusal, which it will be able to exercise
      where developments offered to GELF have been declined.

Goodman Group CEO, Greg Goodman said: "This initiative will allow us to
continue to build momentum across our European platform. Our focus remains on
building strategic relationships with leading global investor groups, such as
CB Richard Ellis Realty Trust, to deliver on our key objective of matching
new third party capital with Goodman's development pipeline."

Jack Cuneo, President and CEO of CB Richard Ellis Realty Trust, said:
"The Co-Investment Vehicles with Goodman provide us an outstanding
opportunity to partner with a leading global logistics development
organization that is well-established in both the UK and European markets.
This relationship will enable us to further diversify our investment
portfolio. The alignment of our strategies has been a key component that led
to our partnership, and we look forward to building upon our mutual

The new Co-Investment Vehicles will help to facilitate the ongoing
expansion of Goodman's logistics business in the UK and Europe. They will
focus on the acquisition of high quality, pre-committed logistics development
opportunities and ensure that the Group has a secure funding platform for its
development business, alternative capital to maintain gearing at conservative
levels and provide ongoing co-investment in core real estate. Goodman is very
well positioned to take advantage of the improvement in the prime logistics
markets, given lower competition and a well established blue chip customer

Goodman has a A$7 billion development pipeline in the UK and Europe
providing considerable opportunities to expand its existing operating
platform. Across the region Goodman has total assets under management of
A$6.1 billion, spanning 137 properties in 12 countries and employs more than
280 people. In Continental Europe, Goodman's European Logistics Fund manages
82 logistics assets valued at A$2.2 billion, while in the UK, the Group has a
further A$0.9 billion of logistics assets and development land.

Jason Dalby, Goodman's Managing Director UK Logistics said: "We are
delighted to deliver on our strategic objective of creating a new UK
Logistics Co-Investment Vehicle by partnering with CB Richard Ellis Realty
Trust. Importantly, it will enable us to retain the prime logistics assets
that we are developing from our land bank and achieve this in a manner that
is consistent with Goodman's prudent pre-funded, pre-sold development

Danny Peeters, Goodman's CEO Continental Europe added: "Establishing a
relationship with a partner that is the calibre of CB Richard Ellis Realty
Trust confirms the quality of Goodman's pan-European platform and integrated
business model. It strengthens our growth strategy in Europe and underpins
the ongoing delivery of our significant development pipeline for prime
logistics assets."

Goodman will provide asset management, development and property services
to the Co-Investment Vehicles on terms generally consistent with existing
arrangements across Goodman's funds management platform.

"Goodman has made a number of significant announcements in recent weeks
concerning transactions that are specifically targeted at providing the Group
with secure long-term capital sources to fund the Group's development
program. This announcement further highlights the momentum that has been
building across our business and demonstrates the Group's ability to
capitalise on growth opportunities while maintaining our strong balance sheet
position. It also demonstrates the commitment of our management team to
deliver the initiatives flagged at the Group's first half FY10 results," Mr
Goodman added.

    About Goodman
    For more information, please visit:

    About CB Richard Ellis Realty Trust
    For more information, please visit:

    For further information, please contact Goodman:

    Greg Goodman
    Group Chief Executive Officer
    Tel: +61-2-9230-7400

Greg Goodman of Group Chief Executive Officer, +61-2-9230-7400

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