In the news release, Goodman and CPPIB Increase Equity
Commitment for China Joint Venture,
and Sign New Debt Facility, issued 13-Dec-2011 by Goodman Group over PR Newswire, we
are advised by the company that the first paragraph, final
sentence, should read "The additional capital increases the
combined equity commitment to the GCLH joint venture to a total of
US$500 million, of which 80% is
represented by CPPIB, who has committed an additional US$250 million." rather than "The additional
capital increases the combined equity commitment to the GCLH joint
venture to a total of US$500 million,
of which 80% is represented by CPPIB, who has committed an
additional US$500 million." as
originally issued inadvertently. The complete, corrected release
follows:
Goodman and CPPIB Increase Equity Commitment for China Joint
Venture, and Sign New Debt Facility
HONG KONG, Dec. 13, 2011 /PRNewswire-Asia/ -- Goodman
Group (Goodman or Group) is pleased to announce that
Canada Pension Plan Investment Board (CPPIB) and Goodman
have increased their equity commitment in the 80/20 joint venture,
Goodman China Logistics Holding (GCLH). The additional capital
increases the combined equity commitment to the GCLH joint venture
to a total of US$500 million, of
which 80% is represented by CPPIB, who has committed an additional
US$250 million.
The joint venture was initially formed by Goodman and CPPIB in
August 2009 to own and develop
logistics assets in Mainland China.
In addition, the joint venture has signed a US$100 million five-year facility with Credit
Agricole Corporate and Investment Bank and ING Bank N.V. Both the
increased equity commitment and bank facility will be used by GCLH
to drive new opportunities in mainland China.
Goodman Group CEO, Greg Goodman,
said, "The initiatives we are announcing today provide our GCLH
joint venture with significant capacity to take advantage of new
opportunities in line with the execution of our China growth
strategy. Significantly, the initiatives also demonstrate the
ongoing support of both equity and debt capital partners for our
managed fund platform."
He added, "We are delighted to be building on our relationship
with CPPIB, and their ongoing commitment to Goodman, while the bank
facility highlights that despite the challenging global economic
environment, banks continue to lend to well managed property groups
with good operating businesses and high quality assets."
CPPIB Senior Vice-President, Real Estate Investments,
Graeme Eadie said, "CPPIB's
additional equity investment reflects the strength of our
relationship with Goodman and the significant opportunities arising
from the strong demand for modern, efficient logistics space in
China. It ensures that GCLH will
continue to perform well over the long term through its
participation in the rapid growth of this market."
The additional capital will help to facilitate Goodman's
strategy of growing its investments in Greater China over the next five years to
RMB19 billion (US$3 billion), from RMB1.9
billion (US$0.3 billion)
today. The Group currently has 20 completed properties in
Greater China offering 1.5 million
sqm of gross lettable area. It has a number of projects underway in
Shanghai and Beijing, with development projects in the
pipeline in Chengdu, Langfang,
Tianjin and Suzhou.
Mr Philip Pearce, Managing
Director of Goodman Greater China, said, "We are confident that
China will become one of the largest logistics markets in the
world, with increasing demand for international grade, high
efficiency warehousing space. As a specialist provider of high
quality logistics space, we are well positioned to take advantage
of opportunities, having secured a number of well located land
sites. This has grown our land bank to in excess of 2 million sqm,
and is consistent with our strategy to continue increasing our
commitment and resources in China,
both directly and through our joint venture partners."
About Goodman
For more information please visit www.goodman.com.
About CPP Investment Board
For more information, please visit www.cppib.ca.
Contacts:
Goodman
Besy Leung
Marketing Director, Asia
Tel: +852-2249-3149 / +852-6111-9452
Citigate Dewe Rogerson
Alphae Chen
Executive Director
Tel: +86-21-6340-4186
SOURCE Goodman Group