This article is from the Australian Property Journal archive
GOODMAN Group has sold its wholly owned subsidiary Goodman Property Investors and its associated investments in GPI managed funds to Aberdeen Asset Management PLC in a £109 million ($A230 million) deal.
Goodman acquired GPI, a provider of direct and indirect property portfolio services in the UK, as part of its takeover Arlington Securities in 2005.
Goodman has sold GPI for approximately £109 million ($A230 million) plus a further £12.5 million in performance based payments over the next two years, contingent on the level of new investor commitments to the combined GPI and Aberdeen Property Investors business.
A portion of the proceeds relating to certain fund interests will be received by Goodman within 9 months of completion resulting in a net upfront cash payment of £91 million.
Proceeds from the sale will initially be utilised to retire debt. Goodman also reaffirms its forecast operational EPS of 34 cents per security for the 2008 financial year.
“We have a robust European platform with great continued growth potential for both logistics and business parks and the European region remains fundamental to our business model contributing a high proportion of Goodman’s earnings,” Goodman Group’s chief executive Gregory Goodman said.
“As part of ongoing operations we conducted a strategic review for GPI in 2007. We concluded that the best way to optimise value for the underlying investors in the GPI platform was for it to be combined with a strong specialist with a highly complimentary business model.
“Aberdeen was a highly strategic fit and was viewed as the best long term owner of GPI. We are pleased to announce this transaction as it represents a successful conclusion to our 2007 strategic review,” Goodman concluded.
Aberdeen’s chief executive Martin Gilbert said the acquisition will make Aberdeen Britain’s second largest property fund manager and a top ten global player, with some £24 billion under management.
“In particular, GPI will give us real scale in the key UK market and transform API into a truly global operation. Together under single ownership the companies of GPI and API will have significant opportunities to offer our clients an enhanced product suite while leveraging management expertise and client relationships across the enlarged group,” he added.
Completion of the sale is subject to receiving approval from the UK Financial Services Authority.
Goodman Group shares traded 11 cents or 2.43% lower at $4.41.
Australian Property Journal
