Goodman Group Ltd
(ASX:GMG) has announced the establishment of two new co-investment vehicles with CB Richard Ellis Realty Trust, one in the UK and another focussing on Europe.
The company says the funds are to invest in pre-committed logistics development opportunities sourced through Goodman.
CB Richard Ellis Realty Trust will hold an 80% stake in the fund with Goodman Group holding the other 20% interest.
Goodman says the UK co-investment vehicle will target a total investment of $969 million over an initial term of three years and will include the acquisition of two UK assets from Goodman for $39 million.
The European co-investment vehicle will target a total investment of $575 million over an initial three year term, focusing on the core Western European markets of Germany, France and the Benelux region which includes Belgium, the Netherlands and Luxembourg.
The European arm will also include the acquisition of $64.9 million of German development assets.
CEO Greg Goodman says this initiative will allow the company to match new third party capital with its development pipeline.
Goodman Group reported a $1.12 billion loss for the 2009 financial year, following profits the two years previous.
