China Investment Corporation’s (CIC) contribution of A$500m towards Australian industrial property trust Goodman Group’s A$1.8bn capital raising highlighted the sovereign fund’s broadening investment portfolio. Leading Australian firms have cashed in on CIC’s latest overseas venture.
Freehills acted as CIC's legal advisor on this investment, and its team was led by partners Fiona Smedley, Leon Pasternak (pictured) and Wendi Gwynn. Goodman was represented by an Allens Arthur Robinson team headed by partners Stuart McCulloch and Tom Story.
“Due to the fact that this is CIC’s debut investment in Australia, this transaction has to be dealt with extra care. CIC is a very sophisticated investor, its successful investment in Australia will give Chinese enterprises greater comfort in investing in Australia,” said Pasternak.
As part of a wider transaction – a capital raising valued at US$1.5bn – CIC’s participation in the equity raising will be via an US$420m investment in exchangeable preference securities.
“I believe these investments are of pragmatic opportunism, CIC’s constitutional mandates do not restrict its investments to specific industries. As long as the returns reflect why the investment is being made, CIC can continue to invest in different sectors,” Pasternak added.
Allens Arthur Robinsons’ Hong Kong based partner Tim Manefield, is also assiting Goodman in forming its new strategic relationship with Canada Pension Plan Investment Board (CPPIB).
“This was a highly complex deal, involving the negotiation and structuring of a hybrid with CIC at the same time was we were undertaking a large accelerated entitlement offer,” said McCulloch.
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