Goodman Group, the Australian listed property trust, is set to carry out an equity raising of around A$1.5bn (£747m) next week.

The business parks and logistics developer is thought to be close to agreeing a recapitalisation deal with Chinese sovereign wealth fund, China Investment Corporation (CIC), alongside a rights issue.

Property Week understands that CIC is to inject up to A$500m (£249m) equity into Goodman, and the developer is thought to be looking to raise a further A$1bn (£498m) through a rights issue from existing shareholders.

It would be CIC’s fourth ever property investment and could see the developer expanding its Chinese operation.

Earlier this month, the sovereign wealth investor provided Goodman with A$200m (£98m) financing package along with Macquarie which provided A$285m (£140m).

The financing was secured to ensure that the company could repay all its 2009 debt.

Macquarie could also provide further equity.

The new equity is likely to be used to reduce Goodman’s gearing to around 30% and is likely to lead to a renegotiation with Goodman’s lenders of the terms and covenants on its existing debt.

Greg Goodman, CEO at Goodman last month described the relationship between Goodman and CIC as ‘highly strategic’.

‘Together we can capitalise on the significant opportunities created by current market conditions,’ he said.

None of the parties involved would comment.