Macquarie Goodman Property Trust raises $112.7Mn

Macquarie Goodman Property Trust raises $112.7 million
Date: 3 March 2006

Following Thursday’s announcement of MGP’s proposed expansion to $1 billion, the Directors of Macquarie Goodman (NZ) Limited (“MGNZ”) are pleased to announce that MGP has secured commitments for $112.7 million with the completion of the book-build for the Institutional Placement.

The book-build process determined an application price of $1.16 with 97,155,172 units to be issued to existing and new institutions. The purpose of the Institutional Placement is to partly fund the acquisition of a portfolio of premium industrial and business space properties for $318.2 million from MGP’s largest investor and supporter, Macquarie Goodman Group (“MGQ”). The Institutional Placement was fully subscribed.

MGNZ Chief Executive Officer John Dakin said, “Importantly, the acquisition will increase MGP’s market capitalisation to over $640 million. This will strengthen its ranking to the second largest listed property trust and 23rd largest listed vehicle on NZX, which will deliver liquidity benefits to MGP Unitholders”.

In part consideration of the acquisition, MGQ will be issued 40,588,235 units for $48.3 million at an issue price of $1.19. Accordingly MGQ will retain a cornerstone investment of 30% reinforcing its commitment to MGP’s success.

Mr Dakin concluded, “The level of local and offshore institutional demand was a big vote of confidence in our strategy for MGP and the many benefits of the acquisition. The placement has also enabled us to introduce a significant number of substantial new investors which adds further depth to MGP’s register.”

The acquisition and placement are subject to Unitholder approval, which will be sought at the meeting scheduled to be held on 22 March 2006. The allotment of new units is expected to be on or about 30 March 2006 with payment of the issue price required before allotment. The new units will rank equally with all other units on issue and will participate equally in all distributions declared after the allotment date.

MGQ’s Chief Executive Officer, Greg Goodman, said, “The acquisition will consolidate MGP’s position with an enhanced portfolio, stronger customer base and increased distributions to Unitholders”.

Eligible Unitholders will also have the opportunity to participate in MGP’s growth with the introduction of the Unit Purchase Plan (“UPP”). The UPP will be available to Unitholders on the register as at 17 March 2006 with a registered address in New Zealand. The maximum investment by a Unitholder will be approximately $5,000. Unitholders will also be able to apply for a number of Units set by MGNZ which have an aggregate issue price of approximately $2,500.

The issue price for Units issued pursuant to the UPP will be the lower of $1.16 and a 0.5% discount to the average end-of-day market price of Units during the period from 6 March 2006 to 10 March 2006 (inclusive) rounded down to the nearest cent.

Units issued under the UPP will rank equally with all other Units on issue and will participate equally in all distributions declared after the date of issue.

A UPP booklet and application form will be dispatched to Unitholders later in the month. The UPP will open on or about 24 March 2006 and close on or about 19 April 2006. However, the UPP is subject to Unitholder approval of the acquisition and placement at the Unitholder meeting on 22 March 2006, and the UPP booklet will permit the UPP to be withdrawn in limited circumstances.

ENDS

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