Soul Patts to sell Brickworks’ industrial JV interests to Goodman Group for $1.9b

The news: Washington H. Soul Pattinson has agreed to sell Brickworks Industrial JV Trust real estate interests to Goodman Australia Industrial Partnership (GAIP) and Goodman Group entities for $1.89 billion.

The context: The deal is part of terms included in the merger between Brickworks and Soul Patts that granted GAIP and Goodman certain pre-emptive rights with regards to JV assets. The negotiated deal value is in line with property values at the time of the Soul Patts merger, which was completed in September.

Joint venture arrangements between Brickworks and Goodman were established in 2005 to maximise the value of surplus land from the Brickworks building products business. The Industrial JV Trust consists of several joint ventures in which Bricksworks has a 50% stake.

The transaction does not impact on the Brickworks Manufacturing Trust, which is a joint venture with Goodman formed in 2022 in which Brickworks continues to hold a 50.1% interest