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Goodman Group proposes strategic acquisition of the Moorabbin airport and business park::

Goodman Group is keen on a strategic acquisition of the Moorabbin Airport and Business Park, reported its Chairman Tuesday. In its proposed offer, the firm reported that it plans to close the acquisition with about $201.5 million, to be remitted by Goodman Holdings. As such, the proposed deal is expected to see Goodman acquire the property via the purchase of the holding entities of Moorabbin Airport Corporation Pty Ltd.

Good Group expects the acquisition of Moorabbin property to enable it manage and take advantage of the array of prospects in the region. According to Goodman Group Chairman, the acquisition will offer the company the chance to put to use its fully integrated business model thus be able to optimise value.

Other than value optimization, the firm will as well be able to undertake its growth and development towards higher levels at the property for which it has been involved from 1999. Should the offer go through, the chairman reiterated that the acquisition will be financed through an issue of the firm’s ordinary equity pegged at $146.52 million and an additional $35 million worth of vendor finance. The raised capital will be further bolstered by an additional $20 million cash to fund working capital from Goodman Group.

The revelations from Goodman Group over the Moorabbin acquisition come after weeks of speculation over a potential sale of the airport to the group. The deal was first reported last year in November and caused a great uproar amongst Goodman Group’s shareholders in December of 2009 as they opposed it.
 
Originally, the company had mooted the idea of acquiring the business park surrounding the airport but now the deal has been expanded to include the airport. Moorabbin Airport and the business park sum up to about 294ha in size. The property is currently partly developed and includes the Business Park and a 37ha estate that is owned by the Goodman Australia Industrial Fund.

There only remains around 73ha of land that is still undeveloped in the property. The move for the acquisition, according to Goodman Group’s chairman, is motivated by the presence of other major players such as Coca-Cola, Visy, the Civil Aviation Safety Authority, Oxford Aviation and DFO that are crucial customers for the company. However, the deal will see Goodman airport continue running the airport under an agreement with the Australian Federal Government.

17 Aug 2010.