China Investment Corporation (CIC) is to become a major investor in Goodman, the Australian listed property trust.
The Chinese sovereign wealth fund will inject up to A$500m into Goodman through the purchase of preference shares as part of a A$1.8bn equity fundraising by Goodman to strengthen its balance sheet.
As tipped by propertyweek.com last Friday, the business parks and logistics developer has announced a recapitalisation deal with CIC alongside a fully underwritten rights issue. Around A$1.3bn is being raised from shareholders.
Goodman is only CIC’s fourth investment overseas. It has bought large shareholdings in US private equity group Blackstone and investment bank Morgan Stanley.
Then in April this year it earmarked $800m for the Morgan Stanley Real Estate Fund VII Global.
Analysts have suggested CIC is refocusing its investments into natural resources, fixed-income assets and real estate as the financial crisis creates distressed investment opportunities.