Australia’s Goodman Raising $2.8B in Equity to Propel Data Centre Growth

Goodman Group on Wednesday announced a plan to raise A$4.4 billion ($2.8 billion) in equity as the Australian industrial specialist seeks to have 500 megawatts of new data centre projects underway within the next 16 months.

The capital raise includes A$4 billion from a fully underwritten placement to institutional investors and A$400 million from a non-underwritten purchase plan for eligible securityholders, ASX-listed Goodman said in a release. The proceeds are aimed at providing Goodman with greater flexibility to pursue growth opportunities across logistics and data centre operations while reducing the group’s short-term debt load.

The Sydney-based developer’s data centre push is intended to meet escalating demand for digital infrastructure driven by cloud-based technologies, data migration, and Al and machine learning.

“Goodman is well positioned to maximise the significant data centre demand across our markets,” said chief executive Greg Goodman. “The additional funds raised provide us with greater financial and operational flexibility to manage the next phase of growth.”

Global Buildout

Goodman boasts a global power bank of 5 gigawatts across 13 key cities, including 2.6GW already secured and 2.4GW in advanced stages of procurement. The secured power consists of 0.5GW stabilised, 0.4GW in progress and 1.7GW in the pipeline.

By June 2026, the group expects to have begun development of new powered shells and fully fitted facilities for 0.5GW worth of data centre projects in Sydney, Melbourne, Los Angeles, Tokyo, Paris, Amsterdam and Hong Kong with an estimated end value greater than A$10 billion.

Data centres make up 46 percent of Goodman’s current work in progress across 68 projects with an estimated end value totalling A$13 billion and a forecast yield on cost of 6.7 percent.

“Goodman’s strategy of providing essential infrastructure for the digital economy — both through our logistics facilities and data centres — has set a strong foundation for the growth we expect to see by executing the global data centre opportunity before us,” the group’s CEO said.

Discounted Offering

The placement price of A$33.50 per security for the new equity offering represents a 6.9 percent discount to Goodman’s Tuesday closing price of A$35.98 on the Australian Securities Exchange. The 119.4 million new securities to be issued will make up 6.2 percent of Goodman’s total securities outstanding.

Also Wednesday, Goodman reported an 8 percent year-on-year rise in operating profit to A$1.2 billion for the company’s first half to the end of December. The group posted a statutory profit of just under A$800 million, swinging from a A$220.1 million loss in the year-earlier period.

Goodman’s total portfolio amounted to A$84.4 billion at the end of calendar 2024, up 7 percent during the preceding six months, with an occupancy rate of 97.1 percent.

“Underlying property fundamentals continue to be characterised by low vacancy rates and minimal new supply in our markets,” the company said. “Earnings from partnership investments increased 12 percent to A$311.9 million due to rent growth, acquisitions and development completions.”