China Sovereign Fund Said to Sell 6.9% Stake in Goodman

China’s sovereign wealth fund sold a 6.9 percent stake in Goodman Group (GMG), Australia’s biggest industrial property trust, to raise about A$519 million ($547 million), according to two people with knowledge of the matter.

China Investment Corp. sold the 116.67 million shares at A$4.45 each and will retain a stake in Goodman of about 9.9 percent, said the people, declining to be identified as the details aren’t public. Goldman Sachs Group Inc. (GS) managed the share sale to local and foreign investors, the people said.

CIC remains Goodman’s biggest investor following the sale, the Sydney-based company said in a statement to the stock exchange today.

“We have a strong relationship with CIC and look forward to further building on this as we explore opportunities in all of the major markets in which Goodman operates globally,” Chief Executive Officer Greg Goodman said in the statement.

Beijing-based CIC, which helps China manage the world’s largest foreign-currency reserves, was set up to improve returns by investing overseas. It posted a 4.3 percent loss on its overseas investments last year, its worst performance since the company was set up in 2007, as declines in global commodity prices roiled the value of its resources-heavy portfolio.

The price paid for the Goodman stock was 3.1 percent below yesterday’s closing price. Goodman shares fell 2.6 percent to A$4.47 at the close of trading in Sydney, paring this year’s gain to 57 percent.

Phone calls to CIC’s press office in Beijing seeking comment today weren’t immediately answered.

To contact the reporters on this story: Brett Foley in Melbourne at bfoley8@bloomberg.net; Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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