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Goodman enters Brazil with WTORRE

Thursday, 08 November 2012

Goodman Group (Goodman or Group) today announces its entry into a joint venture
(Joint Venture or JV) with WTORRE, one of Brazil’s leaders in the development and
construction of industrial warehouse and logistics facilities and commercial real estate,
to undertake development of prime logistics and industrial properties on a 50/50 basis in
key markets throughout Brazil.


Launch of a new Brazilian logistics and industrial property Joint Venture, to be called WTGoodman, with Goodman and WTORRE investing on a 50/50 basis;
Deployment of a highly experienced team, combining WTORRE’s local market expertise and logistics capability with Goodman’s global customer base and funds management expertise;
Development led investment strategy focused on prime logistics and industrial properties  with the objective of matching completed property with the investment demand from Goodman’s global capital partners; and
WTORRE will contribute four existing development land sites, two in Sao Paulo and two in  Rio de Janeiro, comprising 850,000 sqm of Gross Lettable Area (GLA) and a forecast total end value of US$1.1 billion.

Strategic rationale

Brazil is one of the world’s fastest growing economies with a population of 195 million and a
growing middle class. Investors are attracted by the emerging market economic growth and
stable geopolitical environment.

The Brazilian industrial real estate market remains highly fragmented with clear capital
constraints. This provides an opportune time to enter key logistics locations and develop top tier
sites to deliver new investment product for global and local customers alongside our global
capital partners, who have expressed a strong desire to invest alongside Goodman in Brazil.

“Our entry into Brazil further improves our position as a leading global logistics property group.
With A$20 billion of assets under management throughout Asia Pacific and Europe and
following our recent launch into North America, our entry into Brazil represents a further strategic
expansion of our operating platform to service our global customers and capital partners in one
of the world’s fastest growing economies.” said Mr Goodman.

WTORRE, founded by Chairman Walter Torre Junior in 1981, has built more than 5 million sqm
covering 211 projects across the office, retail and industrial sectors. WTORRE is a key market
player, providing innovative solutions in engineering, real estate and infrastructure. It has
completed 71 logistics developments, most of which have been built to suit, and undertaken a
number of landmark projects including Santander Brazil Headquarters in Sao Paulo, Rio Grande
Shipyard, comprising the largest dry dock in the southern hemisphere and Petrobas’ new
headquarters in Rio de Janeiro, which at 100,000 sqm will be Brazil’s largest commercial
building. WTORRE’s customer base includes Carrefour, Nestle, Walmart, Volkswagen and

Joint Venture

The Joint Venture is to be known as WTGoodman. It combines Goodman’s global expertise as a
leading specialist fund manager of industrial property and business space, extensive global
customer and capital partner relationships, with the strength of WTORRE’s leading market
position and proven logistics development capability in Brazil.

“Following extensive due diligence, Goodman is delighted to partner with WTORRE given their
established platform, local relationships, reputation and expertise and their strong development
capability. Critical to the success of Goodman’s continued global expansion is identifying a local
partner with complimentary resources and expertise. Both WTORRE and Goodman employees
will form the Joint Venture to ensure the optimal mix of local knowledge and global experience in
operations and compliance”, said Greg Goodman.

The Board of the Joint Venture will decide unanimously on all major items and be comprised of
four representatives, two from each of WTORRE and Goodman, with WTORRE represented by
the Chairman, Mr Walter Torre and CEO, Mr Paul Remy and Goodman represented by Mr Greg
Goodman and Mr Danny Peeters.

Mr Cesar Nasser has been appointed Chief Executive Officer of WTGoodman. He has 16 years
of experience in real estate and financial markets, including five years as Partner and Executive
Director at RB Capital, one of the largest securitisation and real estate investment companies in
Brazil. Mr Nasser brings the requisite skills and experience to ensure he is ideally suited to lead
the WTGoodman Joint Venture.

“The establishment of WTGoodman is an exciting advancement for both companies and I am
delighted by the enormous opportunities available to our two leading companies. Both WTORRE
and Goodman bring a wealth of complimentary resources to the joint venture and I look forward
to working with the new team to realise the strength of their potential” said WTORRE Chairman,
Mr Walter Torre.

Investment strategy and secured development sites

Equity in the Joint Venture is to be owned, and returns are to be shared, 50/50 by WTORRE and
Goodman. WTORRE will contribute existing industrial development sites and Goodman will fund
the capital expenditure up to the value of R$341 million (A$ 160 million). The JV will seek to
undertake development of prime logistics and industrial properties and look to contribute those
developments to an industrial investment partnership sponsored by Goodman’s global capital

The launch portfolio comprises four sites, Cajamar and Itupeva in Sao Paulo and International
Business Park (IBP) and Nova India in Rio de Janeiro, comprising a total GLA of 850,000 sqm
and a forecast end value of US$1.1 billion. All sites are located in established industrial precincts
with close proximity to key infrastructure and are targeting big box users and / or multi tenanted
facilities. Construction of infrastructure at the Cajamar and IBP sites will commence shortly and
construction at Itupeva and Nova India is scheduled to commence in early 2013.

“Low vacancy rates and a lack of supply in core markets makes this an opportune time to enter
Brazil. We believe that Goodman’s global customer network coupled with WTORRE’s local
knowledge, will drive demand for our secured sites from logistics service providers, retailers and
manufacturing companies, particularly in the fast moving consumer good and automotive
sectors”, said CEO Continental Europe, Goodman and WTGoodman Board Member, Mr Danny

For more information visit

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For more information contact:

Mathew Werner
Group Corporate Communications
Tel + 612 9230 7400
[email protected]

José Carlos Pegorim
+55 (11) 3529-3495 and +55 (11) 9-9149-1727
[email protected]

Ricardo Levy
+55 (11) 3529-3472 and +55 (11) 9-7663-0894
[email protected]

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New
Zealand, Asia, Europe, the United Kingdom and North America. Goodman Group, comprised of
the stapled entities Goodman International Limited, Goodman Industrial Trust and Goodman
Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities
Exchange and one of the largest listed specialist fund managers of industrial property and
business space globally.

Goodman’s global property expertise, integrated own+develop+manage customer service
offering and significant fund management platform ensures it creates innovative property
solutions that meet the individual requirements of its customers, while seeking to deliver longterm
returns for investors.

About WTORRE Group

The WTORRE Group, one of Brazil's leaders in real estate development and the construction of
industrial warehouses and logistics complexes, was founded in 1981 as a real estate developing
company. In more than 30 years of operations, the Group has built more than 5 million square
meters covering 211 projects in Brazil and abroad for companies such as Petrobras, Vivo,
Nestlé, Vale and Volkswagen. Some of its developments have established new market
paradigms, such as the headquarters of Banco Santander, Estaleiro Rio Grande, the JK
Iguatemi mall and Palmeiras’ new arena. The Group is also proud of some of its corporate
responsibility projects, such as the revitalization and maintenance of Parque do Povo in São
Paulo and Brazil’s largest private historical heritage recovery project, in Rio de Janeiro city
center, currently in its conclusion phase. The WTORRE Group is currently developing projects in
nine of Brazil’s states and seven segments: construction, commercial properties, real estate
development, management of logistics facilities, shopping malls, entertainment and the hotel