Goodman Expands Greater China Relationship with CPPIB

By Goodman Group, PRNE
Wednesday, June 29, 2011

SYDNEY, June 30, 2011 -

Goodman Group (Goodman or Group) is
pleased to announce the acquisition by Canada Pension Plan
Investment Board (CPPIB) of the Group’s 50% interest in the Hong
Kong Interlink Project.

Interlink is a development project currently being undertaken on
a 50/50 basis between the Group’s Hong Kong Logistics Fund and
Goodman. CPPIB has agreed to acquire Goodman’s 50% interest in
Interlink on a “fixed price” basis for approx. A$274 million
(HK$2.26 billion) and will fund its share of the development until

Goodman announced the development of Interlink, a landmark
224,000 sqm warehouse and distribution centre in the Tsing Yi port
district in December 2009. The project is the first major logistics
facility to be developed in Hong Kong in almost a decade and one of
the largest industrial developments currently being undertaken
anywhere in the world. Pre-commitments (including Heads of
Agreements) of 81% of the gross lettable area have been secured to
date, with major global customers including DHL Supply Chain and
Yusen Air & Sea Services. The project is on schedule for
practical completion in January 2012, and on completion will have a
value in excess of A$550 million (HK$4.5 billion).

Goodman Group CEO, Greg Goodman said, “Interlink is a world
class development and we are delighted to be expanding our
relationship with CPPIB with this new investment. Significantly,
the transaction will help to drive the Group’s growth strategy in
the region, providing capital for reinvestment in new opportunities
across Greater China, specifically in our targeted cities of
Shanghai, Beijing, Chengdu and Chongqing.”

Graeme Eadie, CPPIB’s Senior Vice President, Real Estate
Investment, said, “This is CPPIB’s first direct real estate
investment in Hong Kong and a rare opportunity to acquire a
significant interest in a prime industrial asset at the centre of
Asia’s largest transportation and logistics hub. Interlink is well
positioned to attract leading, global tenants seeking a
large-scale, modern facility in the Hong Kong area, where the
supply of industrial space is severely constrained and rental
demand is consistently strong.”

Mr. Eadie added, “Our investment in Interlink is aligned with
CPPIB’s global real estate investment strategy of acquiring assets
that can be expected to deliver stable returns over the long-term
and working closely with strong, reputable partners who have deep
local knowledge and experience.”

Goodman will provide asset management, development and property
services on terms generally consistent with existing arrangements
across our current fund management platform.

Goodman Hong Kong Logistics Fund (GHKLF) will retain its 50%
interest in Interlink. GHKLF comprises a small number of large
institutional investors and has delivered consistently strong
returns of 13% p.a. since its inception in 2006. It currently
manages 13 completed industrial assets with 98% occupancy. Total
third party assets under management are valued at A$1.5 billion
(HK$12 billion), making Goodman the largest industrial landlord in
Hong Kong.  

Greater China is one of the fastest growing regions globally and
with a team of more than 240 people across its Hong Kong and
Mainland China operations, Goodman is well positioned to capitalise
on the strong customer demand for logistics solutions.

Goodman’s Managing Director, Greater China, Philip Pearce said,
“Customer demand for prime logistics space in Greater China
continues to exceed supply and our people are very focused on
procuring land and securing development opportunities in response
to the strong demand. Goodman currently has the ability to deliver
over 400,000 sqm of space through commenced developments and
secured land sites in China and we are forecasting this to increase
to in excess of 600,000 sqm by FY2013.”

The growth expected from Goodman’s development and management
activities over the short-term, together with the significant
activity across its international operations, will drive growth in
the Group’s total assets under management. This is forecast to
increase from A$17.7 billion currently, to more than A$20 billion,
with Greater China being a major driver.

Note: AUD/HKD exchange rate of 8.2397 as at 29 June 2011.

About Goodman

Goodman Group is an integrated property group with operations
throughout Australia, New Zealand, Asia, Continental Europe and the
United Kingdom. Goodman Group, comprised of the stapled entities
Goodman Limited and Goodman Industrial Trust, is the largest
industrial property group listed on the Australian Securities
Exchange and one of the largest listed specialist fund managers of
industrial property and business space globally.

Goodman’s global property expertise, integrated
own+develop+manage customer service offering and significant fund
management platform ensures it creates innovative property
solutions that meet the individual requirements of its customers,
while seeking to deliver long-term returns for investors.

For more information please visit href="">

For further information, please contact Goodman:
Greg Goodman
Group Chief Executive Officer


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