Logistics and business park giant Goodman is raising A$955m (£379m) of new equity and is planning to sell A$510m (£202m) of assets to repair its balance sheet.
Shares in the Australian listed company were suspended on Friday pending the announcement of ‘four key strategic initiatives’ this morning.
Goodman’s plans include: a A$755m (£301m) fully underwritten equity raising from share placements; asset sales of A$510m (£202m); the ‘reactivation of the (company’s) distribution reinvestment plan; and the buy-out of Macquarie Bank’s 50% interest in Macquarie Goodman Asia – a jointly managed fund – for A$200m (£79.5m).
Greg Goodman, CEO of Goodman, said: ‘These strategic initiatives are a key part of Goodman’s strategy to ensure we maintain a strong balance sheet with lower gearing levels.
'Recently the market has experienced unprecedented levels of volatility which has created an environment of instability in global financial markets.’
‘It is imperative that the group is well positioned to manage the current market fluctuations.’
He said: ‘Streamlining our Asian business by acquiring the remaining 50% of the Macquarie Goodman Asia joint venture is consistent with our strategy to grow our Asia platform and to take advantage of the significant opportunities the region has to offer. We believe that the Asian region has a better growth outlook in the near term compared to the other markets in which we operate.’
‘These initiatives both strengthen the group and our exposure to critical Asian markets, while giving us the flexibility to prudently manage the business in the current market conditions.’