Goodman Logistics

June 28, 2012 11:34 ET

Goodman Enters North American Market With Birtcher Development and Establishes US$1.5 Billion Investment Partnership

LONDON, UNITED KINGDOM--(Marketwire - June 28, 2012) - Goodman Group (Goodman or Group), today announces that it has entered into an agreement with California-based, Birtcher Development & Investments (Birtcher), focused on the development of, and investment in, prime quality logistics and industrial facilities in key locations across North America. Additionally, Goodman is in final stages of due diligence with regard to a capital partnership targeting approximately US$800 million (A$800 million) of equity commitments.

Key features of Goodman's North American market entry are:

+ Strategic and timely entry into the world's largest, most liquid and transparent real estate market.

+ Capital partnership focusing on the key North American logistics and warehousing and industrial property markets. Initial equity commitment targeting approximately US$800 million (A$800 million).

+ Deployment of a highly experienced team, combining Birtcher's local market expertise with Goodman's global funds management capability, to establish the Group's North American operations. Birtcher will have a management carried interest, post a Goodman preferred return.

+ Development led investment strategy focused initially on the development of prime logistics and industrial facilities in key logistics hubs, with the ability to invest in stabilised properties over time.

+ Secured four development sites, two in the Inland Empire (Los Angeles area), Oakland (San Francisco Bay Area) and Lehigh Valley (Philadelphia), with in excess of 900,000 sqm (9.8 million sq ft) of gross lettable area and a combined total completion value of more than US$700 million (A$700 million).

Goodman's Group Chief Executive Officer, Greg Goodman said, "Today's announcement reinforces Goodman's position as a leading global logistics property group. With A$19 billion (US$19 billion) of assets under management throughout Asia Pacific and Europe, our entry into North America is a logical step in the expansion of our operating platform to service our global customers and equity partners in the world's largest logistics and industrial market. Over time we also see North America growing to be one of Goodman's largest markets in terms of assets under management."

For more information on Goodman Business Parks, across the world, please visit www.goodman.com or http://us.goodman.com/.

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, 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.

About Birtcher Development & Investments

Since 1939, the Birtcher name has been synonymous with enduring design and performance in project execution. Birtcher has developed more than 60 million square feet of industrial, office and retail projects throughout the United States, achieving national expertise and strong reputations in development and construction. Today, Birtcher Development & Investments is solely owned by Brandon Birtcher who carries on the family's five-generation development legacy.

Birtcher's core focus is on providing warehouse and build-to-suit solutions for logistics service providers, manufactures and retailers throughout North America. This is achieved by maintaining land inventory through control of the best sites in America's most attractive logistics markets.

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