Goodman (NZ) has announced an agreement to internalise the management of Goodman Property Trust (GMT).
The move, subject to unitholder and other approvals, will bring an end to the external management arrangement with ASX-listed Goodman Group and transfer the management functions to GMT.
The internalisation is expected to provide growth opportunities for the business, as well as immediate and longer-term benefits for unitholders.
It will reduce expenses, diversify income, and enhance the ability to recycle capital through the establishment of a complementary property funds management business.
As part of the agreement, Goodman Group will be paid $272.4 million to relinquish its management rights and its cornerstone investment in GMT will increase to 31.8%.
The internalised management will also seek to establish a funds management platform.
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