GMT Partners with Singapore's GIC

PR58487

AUCKLAND, New Zealand, Nov. 4, 2014 /PRN=KYODO JBN/ --

   Goodman (NZ) Limited, the Manager of Goodman Property Trust ("Trust" or

"GMT"), has announced the introduction of GIC as a new capital partner in an

expanded joint venture investing in Auckland's Viaduct Quarter. This is GIC's

first real estate investment in New Zealand.

      GIC, Singapore's sovereign wealth fund, is partnering with GMT, to co-   

invest in Auckland's rapidly developing Viaduct Quarter. The joint venture,

which includes GMT's existing Viaduct property interests, has a mandate to grow

to NZ$500 million over time.

   The partnership will initially own a portfolio of assets valued at NZ$313

million. GIC will acquire a 49% interest in these assets while GMT will retain

a 51% share. All future investments will be undertaken on the same basis.

   Keith Smith, Chairman of Goodman (NZ) Limited said, "The benefits of GMT's

close relationship with Goodman Group, one of the world's largest integrated

property groups, have facilitated the introduction of GIC into the New Zealand

market and a broadening of GMT's investment strategy in the Viaduct."

   Greg Goodman, Chief Executive Officer of Goodman Group said, "We are pleased

to be partnering with GIC, one of the world's largest investment funds, and

look forward to extending our involvement in the regeneration of Auckland's

Viaduct Quarter."

   Goh Kok Huat, President of GIC Real Estate, said, "As a long-term investor,

GIC looks to establish strategic partnerships with leading market players.

Goodman has strong asset management expertise and has a good pulse on the New

Zealand market. We believe there will be good investment opportunities that

allow the joint venture to grow further, particularly in the Viaduct Quarter."

   A summary of the initial transaction, which remains subject to certain

conditions including Overseas Investment Office approval, is included in the

Appendix to this announcement.

   Investment Strategy

   John Dakin, Chief Executive Officer of Goodman (NZ) Limited said, "The

Viaduct Quarter is a proven investment location that presents exciting new

opportunities with local government initiatives and private development

transforming the former marine and industrial areas into a world-class,

mixed-use waterfront precinct."

   GMT identified the Viaduct Quarter as a strategic investment location over

eight years ago, acquiring the Air New Zealand building and a 50% interest in

Viaduct Corporate Centre[1] in 2006. These initial investments were extended

with the purchase of the new Fonterra building currently being developed by

Goodman Group and Fletcher Building.

   The investment strategy of the new partnership will continue this commercial

focus, building a portfolio of high quality, campus style office properties,

leased to major customers on long term leases.

   Through its relationship with Goodman Group, the joint venture has options

to purchase future office developments in the Viaduct Quarter and subject to

meeting strict investment hurdles, it is anticipated that the partnership's

property portfolio could grow to NZ$500 million over time.

[1] The entity that owns the Vodafone, KPMG and Microsoft/HP office

    buildings located along Viaduct Harbour Avenue  

   Benefits to GMT

   The new partnership is expected to provide a range of benefits for GMT

including,

    1. Capacity to reinvest in a growing market segment

    2. Access to new office stock in a progressive location

    3. Increased asset and customer diversity

    4. Greater mix of ownership tenures in an expanded portfolio

   John Dakin, said, "The introduction of a like-minded partner gives GMT the

capacity to expand its investment in the Viaduct Quarter, enhancing the overall

portfolio, without the requirement for any significant new funding."

   GMT's gearing reduces as a result of the initial transaction and the Trust

has reaffirmed its FY15 distributable earnings guidance, of 9.1 cents per unit

before tax. Forecast cash distributions of 6.45 cents per unit, are also

unchanged.  

   Introducing GIC

   GIC is a leading global investment firm with well over US$100 billion in

assets under management. Established in 1981, the firm manages Singapore's

foreign reserves and is uniquely positioned for long-term and flexible

investments across a wide range of asset classes, including real estate,

private equity, equities and fixed income. GIC has investments in over 40

countries and has been investing in emerging markets for more than two decades.

Headquartered in Singapore, GIC employs over 1,200 people across 10 offices in

key financial cities worldwide. For more information: www.gic.com.sg

   For further information please contact:

   Goodman

   John Dakin

   Chief Executive Officer

   Goodman (NZ) Limited

   +64-9-375-6063

   +64-21-321-541

   Andy Eakin

   Chief Financial Officer

   Goodman (NZ) Limited

   +64-9-375-6077

   +64-21-305-316

   GIC

   Jennifer Lewis

   Tel: +65-6889-8383

   Mobile: +65-9826-6198

   Email: jenniferlewis@gic.com.sg

   Mah Lay Choon

   Tel: +65-6889-6841

   Mobile: +65-9838-9425

   Email: mahlaychoon@gic.com.sg

   About Goodman Property Trust:

   GMT is an externally managed unit trust, listed on the NZX. It has a market

capitalisation of around $1.3 billion, ranking it in the top 15 of all listed

investment vehicles. The Manager of the Trust is a subsidiary of the ASX listed

Goodman Group, Goodman Group are also the Trust's largest investor with a

cornerstone unitholding of 17.6%.

   GMT is New Zealand's leading industrial and business space provider. It has

a substantial property portfolio with a value in excess of $2.0 billion that

accommodates around 260 customers. The Trust holds an investment grade credit

rating of BBB from Standard & Poor's, with its debt facilities rated at BBB+.

     To download the full release, which includes the transaction Appendix,

please click here: http://photos.prnasia.com/prnk/20141103/8521406491

Photo - http://photos.prnasia.com/prnh/20141103/8521406491-a

   SOURCE: Goodman Group