Goodman Completes US$1 Billion Japan Development Partnership and Expands Core Fund Investor Base

TOKYO /PRNewswire/ — Goodman Japan today announced that it has successfully completed a number of initiatives to strengthen its position in Japan, including the establishment of a new US$1 billion development partnership and new equity commitments for the Goodman Japan Core Fund.

Artist’s impression of Goodman Ichikawa

GJCF portfolio properties in Osaka and Fukuoka
Key announcements:
Goodman Japan has established the Goodman Japan Development Partnership (“GJDP”), which is a 50/50 venture between Goodman and the Abu Dhabi Investment Council. A combined US$500 million of equity has been allocated to GJDP, with the leverage capability of the Partnership allowing for an initial investment target in excess of US$1 billion.
GJDP has executed an agreement to acquire a super prime 30,000 sqm development site in Ichikawa, Tokyo Bay on which a 60,000 sqm modern logistics facility will be constructed.
Successful closing of the stage 1 equity raising for Goodman Japan Core Fund (“GJCF”) with three global institutional investors, increasing GJCF’s external equity commitments to over US$100 million.
Increasing the occupancy of GJCF’s portfolio to 99% with the signing of two new leases with existing customers over properties in the portfolio. This reflects the high levels of customer demand in Japan for properties managed by Goodman Japan and further improves the high cash yield enjoyed by investors in GJCF.
Goodman Japan Development Partnership
GJDP will target logistics development opportunities in key Japanese markets with an initial focus on Tokyo and Osaka. GJDP will capitalise on the proven land sourcing expertise of the Goodman Japan team, strong local and global customer relationships and high levels of customer demand for modern logistics space.
The Ichikawa land acquisition, together with the previously announced land acquisitions in Osaka Bay and Tokyo Bay, means that GJDP launches with an initial investment in three super prime development projects with a planned total GLA of 250,000 sqm and an estimated end value in excess of JPY55.5 billion (US$700 million).
Greg Goodman, CEO of Goodman Group said, “Today’s announcement further demonstrates our successful capital partnering approach with major global investor groups and underscores our strategy of matching third party capital with our growing development pipeline. GJDP provides us with significant capacity to accelerate our expansion plans in Japan in a prudent and measured manner. It is also pleasing to see our team in Japan leverage their strong, local relationships over the last 10 months to acquire these three super prime development sites for GJDP. All three projects are in key port locations, where demand exceeds supply, and have been acquired in transactions negotiated off-market.”
US$700 million development book in Japan
The acquisition of Goodman Ichikawa follows the acquisition of Goodman Kawasaki in March of this year and Goodman Sakai late last year.
Key details of Goodman Ichikawa:
Ichikawa is widely considered one of the best locations in Japan by logistics operators;
Strategically located a short distance to the Tokyo CBD with easy access to Haneda Airport, Tokyo Seaport and Chiba Seaport;
Site located in easy walking distance to Futamata-Shinmachi train station with plans to construct a 60,000 sqm modern, multi-tenant logistics and distribution centre with ramped access to all floors; and
Estimated completion value in excess of JPY17 billion (US$215 million).
Paul McGarry, CEO of Goodman Japan said, “We have a focused strategy in Japan. We are focused on the very best locations where structural changes are leading to increased customer demand and supply remains constrained. The three new development projects enable us to deliver solutions tailored to meet the needs of our customers who are under continual cost pressures due to the structural changes occurring in the Japanese manufacturing, retailing and logistics sectors. The new developments will enable our customers to realise operating efficiencies and improved margins.”
Goodman Japan Core Fund
Key points:
GJCF is a high quality, modern portfolio of nine completed logistics facilities and one parcel of development land located in prime logistics locations in and around Tokyo, Osaka and Fukuoka;
The portfolio has an average age of 5.0 years and average weighted lease expiry of 4.3 years;
Customers in the portfolio include a number of leading Japanese and international third party logistics providers;
Portfolio valuation in excess of JPY49 billion (US$620 million) conservatively leveraged at 50% with a 5 year debt facility that was extended in February 2012 on attractive terms;
GJCF’s investment strategy is to invest in Japanese logistics assets to deliver stable income driven returns with potential for income growth and capital appreciation;
GJCF also provides investors with an enhanced return with a moderate exposure (less than or equal to 10% of GAV) to de-risked development opportunities;
Additionally, GJCF benefits from a first right of refusal over any on market investment acquisitions and developments completed by Goodman Japan or the newly established GJDP; and
Currently a number of additional global institutional investors are undertaking due diligence with closings for stage 2 of the equity raising for GJCF to be undertaken later in the year.
Paul McGarry, CEO of Goodman Japan said, “Structural changes in the Japanese logistics market are driving demand for modern logistics space with supply in key locations remaining constrained. GJCF is well placed to take advantage of these factors and provide institutional investors with a stable, income driven investment return. Global investors are attracted by these characteristics and have chosen to partner with Goodman in Japan due to our high quality portfolio, strong track record and the partnership approach we take to fund governance, with high levels of investor and manager alignment. We are very pleased to welcome these new investors into GJCF.”
About Goodman Group (ASX: GMG)
For more information please visit http://www.goodman.com/
For further information, please contact:
Mathew Werner
Group Corporate Communications Manager
Tel +61-2-9230-7159
Mari Tokaji
Central Executive, Goodman Japan
Tel +81-3-6910-3341
Source: Goodman Group　

FMC China 2012 See You in September

Furniture Manufacturing & Supply China 2012 (FMC China 2012)
FMC Premium 2012
Sept.11-14, 2012
Shanghai World Expo Exhibition & Convention Center (SWEECC)
Woodworking Machinery, Furniture Raw Materials
Organizer: China National Furniture Association
Shanghai UBM Sinoexpo International Exhibition Co., Ltd
SHANGHAI /PRNewswire/ — “Furniture Manufacturing & Supply China 2012 (FMC China 2012)” will be held for 4 days at the Shanghai Expo Exhibition & Convention Center (SWEECC) from September 11-14, 2012. Held concurrently with “FMC Premium 2012”, the show is closely connected to ‘Furniture China 2012’, one of the biggest furniture shows in the world, held in the Shanghai New International Expo Center (SNIEC) with the goal of creating a one-stop platform for furniture design, manufacturing and purchasing.

FMC China 2011 Venue

Homag

FMC China 2012,September 11-14,Shanghai, China
The total area of FMC China 2012 is 71,000 sqm. 750 exhibitors from China, Hong Kong, Taiwan, Australia, Denmark, Finland, France, Germany, India, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, Singapore, Sweden and the US will participate in FMC China 2012 which is also expected to draw 35,000 trade buyers.
FMC China 2012 will be held in 4 different Halls at SWEECC this year.
Hall 1: Woodworking Machinery & Tools, covers about 25,000 square meters, and includes over 200 exhibitors, such as Homag, Shanghai Chaolun, etc.
Hall 2: FMC Premium Area, a show for high-end suppliers of Furniture Components and Raw Materials which contains all products necessary (except woodworking machines) for the highest level furniture production lines. Jiangsu Yuhui, Legget & Platt, and Frenchtimber will be exhibiting. Office Furniture Supplies & Gas Spring Area/ Furniture Coatings & Chemicals include over 70 exhibitors such as Hangzhou Zhongtai and Zhejiang Zhongyi.
Hall 3: Furniture Raw Materials & Components, will be divided into six main parts including Furniture Hardware & Fittings, Furniture Panels & Surface Deco, Furniture Inspection, Design & Services, Furniture Fabric & Leather, Upholstery Furniture Components & Supplies, and Cabinet & Wardrobe Fittings/Furniture Lightings. It will include many famous enterprises such as Beijing Shiquanxin, Nanpao Resin, Xiaoshan Meixin, Tongxiang Aumerry, Hettich, Foshan Everything Aluminium, Robby, Lusterful, Xiongyi, Changzhou Weixing, Hangzhou Nanbo, Hangzhou Wintex, etc.
Hall 4: Design of Designers, which is for the Chinese furniture/home decoration/accessory industry and designers/design firms to communicate and trade. Attendees in Hall 4 could come in contact with many products/ideas designed by famous and talented young designers from all over China and overseas.
On-site Professional Events
The organizer has arranged more than 20 professional onsite events. Events include the First World Health Sleep Industry Conference, Ideas of Coordinated Innovation — Forum on Furniture and Material Design Trends Shanghai Timber Association & Coniferous Timber Committee Unveiling Ceremony & Conference, Shanghai Timber Association Conference — the Imported and Exported Timber Forum, Joint Meeting of Furniture Industry Chain in China, B2B E-commerce Training Program, and New Product Collections.
2012 First World Health Sleep Industry Conference
Co-organized by the China National Furniture Association and Xilinmen Furniture, the World Healthy Sleep Industry Conference will take place on September 12 at SWEECC. The conference theme will be “Healthy Sleep vs. Bedding Industry”.
The conference has invited Mr. Mauro Spinelli, senior expert at CSIL, Mr. Joe Carroll, an international marketing expert from the United States, Metzeler, Europe’s leading German mattress brand, and Mr. Guangliang Wang, general secretary of the Sleep Council in the Chinese Medical Doctor Association to speak. The conference will attract more than 300 delegates from the healthy sleep industry at home and abroad.
Six Overseas Purchasing Groups with Professional Associations and Delegations
Purchasing groups from Vietnam, India, Mexico, Turkey, Russia and Indonesia bring 30 – 40 furniture manufacturers and local woodworking dealers respectively to FMC China 2012 from September 11-14 to visit the related enterprises and factories. Taiwan Woodworking Machinery Association (TWMA), Asia International Furniture Materials Trading Center (AIFM) and Haining Home Textile Association will show their latest product technology onsite.
Please visit our official website for detailed information: http://www.fmcchina.com.cn/.
Source: Shanghai UBM Sinoexpo International Exhibition Co. Ltd

Wing Tai Properties Announces 2012 Interim Results

Creating Value Through Corporate Restructuring Exercise
Strong Project Pipeline & Market Demand Drive Future Growth

HONG KONG /PRNewswire-Asia/ — Wing Tai Properties Limited (“Wing Tai” or the “Group”, SEHK stock code: 369) today announced the Group’s unaudited consolidated results for the six months ended 30 June 2012.
During the period under review, the Group recorded consolidated profit attributable to equity holders of HK$451.9 million, compared with HK$1,363.5 million during the same period last year. The decrease in profit was mainly due to lower fair value gain on the Group’s investment properties during the period.
The Board of Directors proposed to declare an interim dividend of HK4.2 cents per share (1H 2011:HK3.8 cents), or a total interim dividend payout of HK$56.0 million (1H 2011: HK$50.4 million) based on the total number of shares on 30 June 2012.
Deputy Chairman and Chief Executive of the Group, Mr. Edward Cheng, said: “Despite Hong Kong remaining vulnerable to the lingering global economic instability, the local property sector continued to record stable demand under a low interest rate environment. During this period, while we devoted immense efforts on execution of our property development projects and property sales launches, we have taken strategic steps to continue to transform ourselves into a dynamic and diversified property group with a more streamlined corporate structure.”
During the period under review, the Group carried out two major corporate exercises. In April, the Group disposed its interests in Gieves & Hawkes for an initial cash consideration of HK$408 million, with additional entitlements capped at HK$747 million contingent on Gieves & Hawkes’ revenue growth over the next 18 years. The disposal of this non-core business not only optimized value for its shareholders with immediate cash inflow and reported a gain of HK$276 million, but also allows the Group to be more focused on growing its property businesses.
In May, the Group announced a series of proposed transactions in relation to the listed subsidiary Winsor Properties Holdings Limited (“Winsor Properties”) including group reorganisation, distribution in specie, special cash dividend, disposal of the Group’s entire interest in the reorganised Winsor Properties, and the Group’s offer to acquire independent shareholders’ interest in the distributed asset group. This corporate exercise has streamlined the Group’s overall corporate structure, enhanced its financial position and shareholders’ value by creating a solid platform with greater financing capability to support its future growth. As a result, the Group has reduced the existing holding company discount, consolidated its property interest with more direct control over the portfolio of investment properties, as well as increase recurring earnings and cash flow going forward. The related gain on disposal and accretion to shareholders’ equity will be realised and reported in the second half of this year.
BUSINESS REVIEW
Property Development
During the period under review, revenue and operating profit generated from this segment amounted to HK$208 million and HK$99 million respectively.
The two remaining special units at Forfar were sold for HK$207.4 million revenue. Seymour, in which the Group has a 30% interest, was re-launched in June 2012 with good market reception. Almost all units pre-sold in late 2009 were handed over to owners in the first half of 2012.
The Warren, the Group’s development in Tai Hang was launched for pre-sale in November 2011 and over 55% of the units have been pre-sold to date. Superstructure works are in progress. The project is scheduled for completion in 2014.
The Pak Shek Kok development at Tai Po is at varying stages of development. Providence Peak was launched for pre-sale in May 2012 and over 27% of the units have been pre-sold to date. Meanwhile, Providence Bay has sold over 45% of the units since its pre-sale launched in November 2011. Application for presale consent has been submitted for the remaining lot. The entire development is expected to be completed in phases between 2012 and 2013.
Foundation works for The Pierre at the Mid-Levels are progressing well. This project is scheduled for completion in 2014.
Foundation works for the residential development at Ko Shan Road in Hung Hom, in which the Group has a 50% interest in the joint venture with the Nan Fung Group, are progressing on schedule. The development is scheduled for completion in 2015.
At Belle Vue Residences, a luxury residential development in Singapore, 91% of the units have been sold, out of which 9% were sold in the first half of 2012.
Property Investment and Management
During the period under review, revenue and operating profit of this segment increased 18% and 13% to reach HK$268 million and HK$161 million respectively as compared to the corresponding period in 2011.
As at 30 June 2012, excluding Regent Centre to be disposed of after 30 June 2012, the Group’s portfolio of investment properties, comprising 1.5 million square feet of Grade A office buildings and 0.7 million square feet of industrial buildings in the urban areas of Kowloon, had an aggregate fair market valuation of HK$11,067.7 million.
Landmark East continued to maintain near-full occupancy with spot rent continuing to increase. As at 30 June 2012, W Square achieved an occupancy rate of over 90% while the average occupancy rate for the industrial properties is approximately 94%.
The Group has a 50% interest in the Lujiazui property at Shanghai Pudong’s financial and commercial district fronting the Bund. The property is under construction and is scheduled for completion in 2013.
Hospitality Investment and Management
The Group’s hospitality business under Lanson Place Management recorded a steady profit in the first half of 2012, with a gradual increase in average rental rate despite the softening of Hong Kong hotel market and refurbishment of Lanson Place Hotel. During the period under review, revenue increased 3% to HK$69 million as compared to the corresponding period in 2011 while operating profit was HK$31 million.
As at 30 June 2012, both Lanson Place Jinlin Tiandi Serviced Residences in Shanghai and Lanson Place Central Park Serviced Residences in Beijing achieved over 90% occupancy. Lanson Place Hotel, our luxury boutique hotel in Hong Kong, continues to be well-recognised by travellers and won various awards including the Asia Pacific Hotels Awards “The Best Hotel, Hong Kong 2012”, the Travel & Leisure Magazine’s 2011 Annual Travel Awards “2011 Best Boutique Hotel” and the TripAdvisor “Top 25 Trendiest Hotels in China”.
PROSPECTS
Looking forward, the global economy is likely to stay volatile for the rest of 2012, leading to slowing economic growth in China and Hong Kong. There is uncertainty where the Hong Kong property market is heading under the new government housing policy. However, given Hong Kong’s solid economic fundamentals, steady market demand, continued low interest rate environment, and potential increase in land supply by the government, the Group remains cautiously optimistic on the prospects of Hong Kong’s property market.
The financial impact of the corporate exercise on Winsor Properties will be fully reflected in the second half of 2012, including as estimated gain on disposal of approximately HK$240 million and accretion of shareholders’ equity of approximately HK$630million, subject to audit.
In property development, earnings and cash flow in the second half will be driven by sales at Seymour, Providence Bay and Belle Vue Residences. The occupation permit for the various phases of Providence Bay is expected to be granted in the fourth quarter, upon which the revenue and profit of all sold units and new sales will be recognized. Subject to market conditions, the Group will re-launch The Warren and release for pre-sale The Pierre in Mid-Levels. The Group will closely monitor the market to identify the right window of opportunity to launch its projects, and continue to acquire new sites to replenish land bank for further expansion.
For investment property business, the Group expects to continue to benefit from the strong demand arising from the tight office supply, decentralization trend and development of Kowloon East. Landmark East and other properties are likely to see further upward rental reversion with high occupancy. The Group expects its dynamic portfolio of boutique hotel and serviced residences to continue delivering good operating performance. At the same time, Lanson Place will actively explore investment and management opportunities in the region for further expansion.
Mr. Cheng concludes: “Barring unforeseen circumstances, the results for the coming full year are expected to be promising with the recognition of development project earnings and increasing recurring income. With an enhanced platform and strengthened balance sheet, we will remain vigilant against any near-term market volatility and work diligently to execute our projects and capture expansion opportunities.”
About Wing Tai Properties Limited
The business of Wing Tai Properties Limited (SEHK stock code: 369) (Previously known as USI Holdings Limited) spans three core areas: property development under the Wing Tai Asia brand; property investment and management arm; and the hospitality investment and management arm under its Lanson Place brand in Hong Kong, Shanghai, Beijing, Singapore and Kuala Lumpur. Wing Tai Properties was listed on the Stock Exchange of Hong Kong Limited in 1991.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2012
Unaudited
Six months ended 30 June
2012 2011
HK$’M HK$’M
(re-presented)

Continuing operations
Revenue 652.7 921.5
Cost of sales (233.8) (478.9)
_________ _________
Gross profit 418.9 442.6
Other gains, net 22.8 41.5
Selling and distribution costs (47.5) (40.8)
Administrative expenses (142.8) (126.4)
Change in fair value of investment properties 60.2 1,491.2
_________ _________
Profit from operations 311.6 1,808.1
Finance costs (47.8) (43.4)
Finance income 5.0 3.4
Share of results of associates 31.9 46.8
_________ _________
Profit before taxation from continuing operations 300.7 1,814.9
Taxation (47.5) (55.2)
_________ _________
Profit for the period from continuing operations 253.2 1,759.7

Discontinued operations
Loss for the period from discontinued operations (22.3) (25.2)
Gain on disposal of subsidiaries 275.6 –
_________ _________
253.3 (25.2)
_________ _________
Profit for the period 506.5 1,734.5
_________ _________
Attributable to:
Equity holders of the Company
– From continuing operations 198.6 1,388.7
– From discontinued operations 253.3 (25.2)
_________ _________
451.9 1,363.5
Non-controlling interests
– From continuing operations 54.6 371.0
_________ _________
506.5 1,734.5
_________ _________
CONDENSED CONSOLIDATED INCOME STATEMENT (cont’d)
For the six months ended 30 June 2012

Unaudited
Six months ended 30 June
2012 2011
HK$’M HK$’M
(re-presented)
Earnings/(loss) per share attributable to
equity holders of the Company
(expressed in HK dollar per share)

Basic earnings/(loss) per share
– From continuing operations HK$0.15 HK$1.05
– From discontinued operations HK$0.19 HK$(0.02)
_________ _________
HK$0.34 HK$1.03
_________ _________

Diluted earnings/(loss) per share
– From continuing operations HK$0.15 HK$1.04
– From discontinued operations HK$0.19 HK$(0.02)
_________ _________
HK$0.34 HK$1.02
_________ _________

Dividends (expressed in HK$’M) 158.4 136.6
_________ _________
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2012
Unaudited Audited
30 June 2012 31 December 2011
HK$’M HK$’M
ASSETS AND LIABILITIES
Non-current assets
Land use rights 3.2 3.2
Investment properties 12,896.1 13,894.0
Other properties, plant and equipment 121.5 180.9
Interests in associates 426.1 469.5
Loans to associates 44.7 47.8
Deposits and loan receivables 350.9 306.1
Available-for-sale financial assets 375.2 357.7
Held-to-maturity investments 50.7 65.8
Deferred tax assets 12.6 9.4
Derivative financial instruments 0.2 0.2
_________ _________
14,281.2 15,334.6
_________ _________
Current assets
Inventories 72.4 68.8
Properties for sale 4,332.6 4,227.9
Deposits and loan receivables 168.7 175.0
Trade and other receivables, deposits
and prepayments 389.2 871.8
Available-for-sale financial assets 88.6 –
Held-to-maturity investments 80.9 29.2
Sales proceeds held in stakeholders’ accounts 243.0 146.4
Amounts due from associates 3.7 2.2
Tax recoverable 0.1 0.8
Pledged and restricted bank deposits 11.0 3.5
Bank balances and cash 1,942.4 976.6
_________ _________
7,332.6 6,502.2
Assets of a disposal group classified as held for sale 1,138.3 –
_________ _________
8,470.9 6,502.2
_________ _________
Current liabilities
Trade and other payables and accruals 1,269.3 907.9
Derivative financial instruments 46.7 45.8
Amounts due to associates 0.3 0.3
Tax payable 122.2 90.7
Bank loans due within one year 2,100.3 1,704.6
_________ _________
3,538.8 2,749.3
Liabilities of a disposal group associated with
assets held for sale 169.1 –
_________ _________
3,707.9 2,749.3
_________ _________

Net current assets 4,763.0 3,752.9
_________ _________
CONDENSED CONSOLIDATED BALANCE SHEET (cont’d)
As at 30 June 2012

Unaudited Audited
30 June 31 December
2012 2011
HK$’M HK$’M

Total assets less current liabilities 19,044.2 19,087.5
_________ _________

Non-current liabilities
Bank loans due after one year 2,923.7 3,448.6
Other long-term loans – 35.5
Derivative financial instruments 58.0 67.2
Deferred tax liabilities 144.7 153.5
_________ _________
3,126.4 3,704.8
_________ _________
NET ASSETS 15,917.8 15,382.7
_________ _________

EQUITY
Equity attributable to
equity holders of the Company
Share capital 666.1 663.2
Reserves 12,768.6 12,284.5
_________ _________
13,434.7 12,947.7
Non-controlling interests 2,483.1 2,435.0
_________ _________
TOTAL EQUITY 15,917.8 15,382.7
_________ _________
Source: Wing Tai Properties Limited