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23-12-2015, 08:58 AM
Goodman and Mirvac strengthen China ties
China is becoming more embedded in Australia’s property market, with listed giants Goodman and Mirvac striking deals that strengthen their ties with a nation that has been shaking up global real estate.
Industrial property powerhouse Goodman and Canada Pension Plan Investment Board yesterday unveiled a $US1.25 billion ($1.74bn) boost to the amount of equity they have poured into their Goodman China Logistics Partnership, which is building warehouses around China.
The deal was announced just after Mirvac said it had forged a major joint venture with Chinese insurance group Ping An Real Estate, a unit of one of China’s largest insurers, to develop apartment and housing projects across Australian cities, with a Sydney deal the first site.
Both deals are being driven by the expertise of the Australian groups.
In the Goodman deal, CPPIB will commit $US1bn and Goodman $US250 million, to expand the logistics venture the Australian company runs in mainland China. The pair are seeing strong demand in major logistics markets, including in Shanghai, Beijing and western China, with an emerging class of consumers driving an e-commerce boom.
The head of the Australian group, Greg Goodman, said CPPIB was an important global partner, and the pair already has ventures in Australia, Britain and the US.
“With this increase in equity allocation and acquisitions, our China platform will be strengthened across key markets and provide full alignment for the ongoing expansion of the portfolio,” he said.
CPPIB head of real estate investments, Asia, Jimmy Phua, said that the fundamentals of the Chinese logistics and e-commerce sectors, which underpin the growth in demand for prime logistics facilities remain compelling.
Locally, Ping An is backing Mirvac’s expertise in luxury apartments. The Chinese group will first back a 226 unit project called The Finery, in Sydney’s inner-city Waterloo, that Mirvac will develop.
The Australian’s Data Room in September revealed that Ping An was weighing a $100m injection into the project.
“We are thrilled to be entering into a joint venture with a substantial organisation such as Ping An Real Estate, which provides Mirvac with the opportunity to expand the relationship to both existing and new projects,” Mirvac CEO Susan Lloyd-Hurwitz, said.
- THE AUSTRALIAN
- DECEMBER 23, 2015 12:00AM
- Ben Wilmot
[Image: ben_wilmot.png]
Commercial property reporter
Sydney
[img=650x0]http://cdn.newsapi.com.au/image/v1/1786053cdfc7e1e09b9932165555c138?width=650[/img]
[*]Goodman group chief executive Greg Goodman. Picture: Mooy Sam
China is becoming more embedded in Australia’s property market, with listed giants Goodman and Mirvac striking deals that strengthen their ties with a nation that has been shaking up global real estate.
Industrial property powerhouse Goodman and Canada Pension Plan Investment Board yesterday unveiled a $US1.25 billion ($1.74bn) boost to the amount of equity they have poured into their Goodman China Logistics Partnership, which is building warehouses around China.
The deal was announced just after Mirvac said it had forged a major joint venture with Chinese insurance group Ping An Real Estate, a unit of one of China’s largest insurers, to develop apartment and housing projects across Australian cities, with a Sydney deal the first site.
Both deals are being driven by the expertise of the Australian groups.
In the Goodman deal, CPPIB will commit $US1bn and Goodman $US250 million, to expand the logistics venture the Australian company runs in mainland China. The pair are seeing strong demand in major logistics markets, including in Shanghai, Beijing and western China, with an emerging class of consumers driving an e-commerce boom.
The head of the Australian group, Greg Goodman, said CPPIB was an important global partner, and the pair already has ventures in Australia, Britain and the US.
“With this increase in equity allocation and acquisitions, our China platform will be strengthened across key markets and provide full alignment for the ongoing expansion of the portfolio,” he said.
CPPIB head of real estate investments, Asia, Jimmy Phua, said that the fundamentals of the Chinese logistics and e-commerce sectors, which underpin the growth in demand for prime logistics facilities remain compelling.
Locally, Ping An is backing Mirvac’s expertise in luxury apartments. The Chinese group will first back a 226 unit project called The Finery, in Sydney’s inner-city Waterloo, that Mirvac will develop.
The Australian’s Data Room in September revealed that Ping An was weighing a $100m injection into the project.
“We are thrilled to be entering into a joint venture with a substantial organisation such as Ping An Real Estate, which provides Mirvac with the opportunity to expand the relationship to both existing and new projects,” Mirvac CEO Susan Lloyd-Hurwitz, said.