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SYDNEY-Macquarie Bank has sold its 7% in giant industrial property trust Macquarie Goodman Group to realize more than A$730 million ($555 million). Both parties declined to comment, but it is understood Goodman Holdings bought 1%, increasing its stake to 9%.
The sale ends Macquarie Bank's six-year association with the industrial trust. Analysts expect Macquarie Goodman to be re-branded and the Macquarie name dropped. The bank's 124 million Macquarie Goodman securities were offered at a fixed price of about A$5.90, a 7.7% discount to the trust's closing price yesterday of A$6.39.
Analysts say Macquarie Bank wants to recycle capital but that it was also concerned about Macquarie Goodman's offshore expansion which meant it was competing for assets with other Macquarie trusts or partners.
The bank-managed Macquarie Prologis Trust owns warehouses and distribution centers in the US and Mexico. Macquarie Goodman pushed into Europe with the acquisition of funds manager Arlington Securities last year and this year's purchase of European logistics property developer Eurinpro International for A$599 million ($456 million). In Europe it could be competing for industrial assets with Macquarie partner and ProLogis. But at Macquarie Goodman's profit result on Monday, chief executive Greg Goodman said the group was generally competing in different areas to ProLogis.
One analyst says it was a good time to sell. "I would have happily sold Macquarie Goodman at $5 a share and it's put on another $1.30 in about three months," he explains.
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