This article is from the Australian Property Journal archive
Macquarie Goodman has snared one of the United Kingdom's largest logistics property developer, Rosemound Developments for 336 million pounds ($A840 million) to seed a UK logistics fund.
Rosemound has a geographically diverse land bank located in key logistics channels and hubs throughout the UK. The company has a total land bank of over 1,000 acres and 30 staff with significant sector expertise.
Macquarie Goodman’s chief executive Gregory Goodman said Rosemound is highly complementary to the group’s existing European business space platform.
“Following the expansion into Continental Europe in 2006, we have been looking to expand our logistics presence into the UK… We will now be able to provide a Pan-European solution to customers by drawing on Rosemound’s significant UK land bank and management expertise,” he added.
The acquisition will add over 1.8 million sqm to Macquarie Goodman’s UK development pipeline with an estimated end value of 1.7 billion pounds ($A4.1 billion).
Rosemound is 50% owned by HBoS Plc (Halifax Bank of Scotland) and has a current working capital of £250 million for land acquisition, development finance and speculative development.
In 2005, the company built in excess of 4.25 million sq ft and currently owns in excess of 600 acres of development land at Andover, Bristol, Burton, Crewe, Derby, Daventry, Hoddesdon and Thurrock.
Goodman said the acquisition combined with the group’s existing UK logistics assets, the Rosemound portfolio provides highly suitable seed assets for the proposed UK logistics fund as well as a quality pipeline of assets that can be contributed to a fund in the future.
Rosemound’s executive chairman David Keir said the strategic fit between the businesses will encourage expansion across both the UK and Europe.
Macquarie Goodman will fund the acquisition with debt facilities taking gearing to 44%. Upon establishment of the proposed UK logistics fund, gearing will fall to within the group’s target of 35% to 40%.
Meanwhile, Macquarie Goodman has been actively growing its business in the third quarter of this year.
The group’s assets under management increased 5% to $34.9 billion and the average performance of the European funds was 21.5% for CY2006.
The group has also recycled some $400 million of its capital through transactions with the Australian wholesale fund and the disposal of part of the Lighthouse portfolio in the UK.
“We have had an active quarter across all facets of the business. Our European funds management platform posted a strong performance in CY06 with all funds exceeding the IPD index,” Goodman said.
The group has reaffirmed its FY07 earnings per security of 31.5 cents.
Australian Property Journal
