Goodman Group, Australia’s biggest industrial real estate investment trust, will seek to raise A$1 billion ($1.05 billion) in equity over the next year as it expands in Japan, China and Europe.
The group is planning about A$900 million of development in Japan over the next year, the first of which will be revealed next week, Chief Executive Officer Greg Goodman said in a telephone interview. It has about 2 million square meters (23 million square feet) of land either in hand or under negotiation across China and is conducting due diligence to buy properties to expand its European Logistics Fund over the next six months, he said.
“In a world where growth is going to be slow, we’re well positioned,” Goodman said. “Interest rates around the world are pretty low and good assets at good yields are attractive.”
The Sydney-based company swung to a profit of A$392 million in the year to June 30, driven by its management and development businesses, it said today. Operating profit will be about A$460 million in the 2012 fiscal year, it said.
In addition to the equity it will raise, the group will also consider bond sales in Australia, loans from non-bank lenders, private placements in the U.S. and European debt, if terms are attractive, Goodman said.
Goodman shares dropped 3 percent to 64.50 Australian cents at the 4:10 p.m. close of trade in Sydney.