This article is from the Australian Property Journal archive
INVESTORS have approved Goodman Property Trust’s internalisation proposal, ending the current external management arrangement with ASX-listed Goodman Group.
The key terms of the internalisation proposal include Goodman Group being paid $272.4 million to relinquish its managements rights, for shares in Goodman Property Services (NZ) Limited (GPSNZ).
Net of tax, the $199.3 million consideration represents a 9.1x multiple of the $22.0 million normalised FY24 savings Goodman Property Trust (GMT) expects to realise.
With a further $17.6 million to be paid to Goodman Group to settle GMT’s performance fee obligations.
With Goodman Group to use the total $290 million to subscribe for new units in GMT at $2.14 per unit, increasing its cornerstone investment in GMT to 31.8%.
“Internalisation is expected to provide growth opportunities for our business, and immediate and longer-term benefits to our Unitholders,” said James Spence, CEO at Goodman (NZ) Limited (GNZ) when the move was initially approved by the board in February.
“It reduces expenses, diversifies income, and enhances the ability to recycle capital through the establishment of a complementary property funds management business.”
The proposal is set to become effective from 28 March 2024.
“We are delighted with the strong endorsement from Unitholders. Internalisation offers exciting growth opportunities for GMT and we look forward to providing an update on these initiatives in due course,” added Spence after the recent special meeting of unitholders.
