Friday 19th December 2003
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Speaking from Sydney yesterday, Greg Goodman said the latest move represented more than a financial commitment to building the Colonial First State Property Trust (CFPT).
It was a sought-after opportunity for the Macquarie group to build its retail presence in this country and the listed trust would be renamed Macquarie Goodman Property Trust to highlight the brand.
The listed CFPT is 53% owned by Sovereign, part of the Commonwealth Bank group of companies, and managed by Colonial First State Group, also part of the same group of companies.
In common with the other listed trusts, the restructuring deals are as much about the income stream from management fees, with fund managers usually seizing a controlling shareholding to retain management control (the Macquarie Goodman deal mirrors the recent ING takeover and expansion of Paramount Property Trust).
In this case Macquarie Goodman Management will buy 20% of Sovereign's stake in the trust and also buy the management company for $5.75 million.
The CFPT listed portfolio of $216 million worth of property will then be enlarged, with the inclusion $144 million worth of other Macquarie industrial property assets in this country, mostly located in Auckland.
Two office properties in Wellington and the South City Shopping Centre in Christchurch will be sold.
Sovereign's remaining 33% of shares will be sold to institutions.
The fund manager said it will re-weight its investment portfolios toward global equities.
Asked why Australian fund managers were buying up property in New Zealand at the height of the market, Mr Goodman said Macquarie Goodman Management was taking a longer-term view and wanted to bring its business model to this country.
It involved creating value for investors and tenants in the niche industrial sector.
In 2000 the Goodman family joined forces with Macquarie Bank and its industrial property interests to create Macquarie Goodman Management, 40% owned by Macquarie and 20% by the Goodman family.
Both parties also have just under 5% in the ASX-listed Macquarie Goodman Industrial Trust.
The Goodmans have been active share investors in Australia and New Zealand.
They own homes and properties in Sydney, the NSW Southern Highlands, the Marlborough Sounds and in their hometown of Motueka.
Management of the family's investments is in the hands of Sir Patrick's eldest son Patrick (41), a director of MGM, representing the Goodman family interests. Gregory (40) is chief executive of both MGM and MGI, while Craig (37), is development executive of MGM.
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