Goodman and Prologis tap hot market with new round of equity raising

Investors continue to back core European logistics funds, attracted by their income, with Goodman and Prologis both raising fresh equity. Goodman raised €550m of new equity for its European Logistics Fund (GELF) this month. Following the issuance in March of the fund’s first, €500m Eurobond, GELF now has more than €800m of capital to invest.

Meanwhile, Prologis European Properties Fund II recently re-opened to new investors for the first time since its 2007 launch, with New Jersey Division of Investment making a $185m commitment, representing 7% of the fund.

Timothy Walsh, director of the US pension plan, said New Jersey was attracted by the yield of more than 7%, combined with the prospect of growth in the value of its 200-plus  properties. Greg Goodman said interest in GELF had been “overwhelming” with investors scaled back after the fund received demand for €900m.

Existing investors contributed most of the fresh equity raised. Goodman sold down its stake from 28.4% to 20%. GELF’s last equity raising was in December 2011. Its large investors include APG, PGGM and Aviva Investors. The €1.9bn fund was launched  in late 2006 and has 94 assets in 11 countries.