GMT announces new capital partnership

nzx release+
GMT announces new capital partnership
Date 29 May 2025
Release Immediate
Goodman Property Services (NZ) Limited, as Manager of GMT, is pleased to
announce an agreement to establish a new open-ended property fund to hold
Highbrook Business Park.
To be established as a limited partnership owning the $2.1 billion estate, GMT will
hold a 72% ownership interest with a global investment manager on behalf of
Australian and New Zealand discretionary funds and Goodman Group acquiring 12%
and 16% ownership interests respectively.
Chief Executive Officer James Spence said, “Our new international partners are attracted
by the strong fundamentals of the Auckland industrial market, the quality and scale of
Highbrook Business Park, and the value of GMT’s management expertise.
We’re delivering on one of the key strategic objectives outlined at the time of the
Internalisation transaction last year, with this new capital partnership extending the scope
of our business and supporting a new growth phase for GMT. Transactions such as this
will be transformative as unitholders benefit from fee revenue and the release of capital
provides GMT with significant capacity for future investment.”
Transaction rationale
The Board considers the sale of a minority interest in the now complete Highbrook
Business Park the best way to recycle capital into higher return development opportunities.
This is more attractive than an equity issue in the current market environment which would
typically be at a discount to NTA.
Returns are significantly bolstered when Highbrook Business Park is held in a fund which
will be managed by Goodman Property Services (NZ) Limited, with GMT's unitholders
receiving the benefit of the management fee revenue received.
The implied value of $2.1 billion for Highbrook Business Park in the fund is consistent with
external valuations as at 31 March 2025.
GMT's holding of a 72% ownership interest in the fund ensures unitholders retain significant
exposure to, and benefit from, Highbrook Business Park which will not be able to be sold by
the fund without GMT's approval.
New equity investments in the fund by Goodman Group ($200 million) and the second new
capital partner ($150 million), together with the new fund raising $840 million of bank debt
(at 40% leverage) means that, as well as its 72% interest in the new fund, GMT will receive
$1.19 billion in cash which enables GMT to paydown debt and provides capital for future
investment. GMT’s look-through gearing will reduce by around 10% as a result.
James Spence continued, “Capital partnering leverages our existing management
capability, creating additional value for unitholders. The ability to grow our funds
management platform over time, creates a highly scalable platform, maintaining gearing

within an optimal range and providing GMT the ability to finance its growth objectives
without increasing the financial risk of the business.”
The investment in the new fund is expected to settle on receipt of certain financier and
regulatory approvals and finalisation of financing arrangements. Covenant Trustee
Services Limited, GMT's statutory supervisor, has already provided its consent to GMT
undertaking establishing the fund.
Unitholder approval not required
There is no requirement for unitholder approval.
The aggregate size of the investment (being $350 million) is below the level requiring
approval from unitholders for a major transaction and GMT retains 72% of the fund.
GMT has also received a waiver from Listing Rule 5.2.1. due to the participation of
Goodman Group. The waiver was granted because Goodman Group had no influence over
GMT's decisions to establish the fund, or to sell a minority interest in Highbrook Business
Park, or to involve either of the new partners in the transaction, or the negotiation of the key
commercial terms of the transaction.
GMT's independent directors consider the transaction will have a significant positive net
economic effect for, and that it is in the best interests of, GMT and its unitholders.
Any delay caused by the requirement to seek unitholder approval would have risked the
pricing and commitment received.
For further information relating to the transaction and the Listing Rule waiver received,
please see the waiver decision and GMT's independent director certificate released by NZ
RegCo and GMT and available at
https://www.nzx.com/companies/GMT/announcements?year=2025.
A full business update, including in relation to the establishment of the fund, will be
provided at GMT’s FY25 annual result presentation at 10:30 am today. The link to the
webcast is: https://ccmediaframe.com/?id=QqJtS2PY

For additional information please contact:

James Spence
Chief Executive Officer
Goodman Property Services (NZ) Limited
(09) 903 3269
Andy Eakin
Chief Financial Officer
Goodman Property Services (NZ) Limited
(09) 375 6077


About Goodman Property Trust:
GMT is a managed investment scheme, listed on the NZX. It has a market capitalisation of around $3 billion, ranking it in the top
15 of all listed investment entities. The Trust is New Zealand’s leading warehouse and logistics space provider. The Trust holds
an investment grade credit rating of BBB from S&P Global Ratings.