Goodman Group up on talk of China CIC investment

MELBOURNE, June 15 (Reuters) - Goodman Group (GMG.AX) shares jumped as much as 10 percent on Monday on speculation China Investment Corp would invest more than A$500 million ($407 million) in the Australian industrial and office property trust to help it slash debt.

Goodman Group is also expected to launch a rights offer to help cut debt, which stood at A$4.1 billion as of last December.

A Goodman spokeswoman declined to comment on Monday on an unsourced report in the Australian Financial Review that China Investment Corp was going to invest more than A$500 million and Goodman that planned to raise more than A$1 billion through a rights offer in the next month.

A CIC spokesman was not immediately available for comment.

Goodman owns, develops and manages office buildings, warehouses and industrial sites in Australia, New Zealand, Europe and Asia. It also manages property investment funds, currently worth A$14.3 billion, according to its Web site (www.goodman.com).

It said last month it was talking to potential strategic investors to buy stakes in the group and its underlying funds, after Macquarie Group (MQG.AX) backed a new A$300 million loan facility.

As part of the agreement, Macquarie was given options on 414 million new shares at A$0.30 each, and Goodman said any new strategic investors would participate on the same terms as Macquarie.

Its shares have more than doubled over the past three weeks in anticipation it would be able to line up a new investor and last traded up 6.7 percent at A$0.48.

Goldman Sachs JBWere estimated last week that Goodman could raise A$1.27 billion with a one-for-one rights offer at A$0.40 a share.

Macquarie and JP Morgan (JPM.N) are reported to be advising Goodman on a rights offer, in which CIC would also participate.

A portfolio manager with one shareholder said he had not been approached on a rights offer yet. ($1=1.228 Australian Dollar) (Reporting by Sonali Paul; Editing by James Thornhill)