Business Activities News
- Goodman set to pour $2-3 billion
Date: 3-Jul-2007 Sources: (People's Daily)
SHANGHAI: Goodman, the world's second-largest industrial property developer, is planning to pour $2 to $3 billion in the next three to five years in China, increasing its current investment almost tenfold.
Goodman, which entered China two years ago, has so far developed and owns $200 million of industrial properties in the country, concentrated in Shanghai.
Formerly known as Macquarie Goodman, Australia's biggest listed industrial property firm will 'have $2 to $3 billion of industrial properties (in China) under its management three to five years from now', said David van Aanholt, CEO of Goodman Asia-Pacific.
China currently accounts for less than 0.25 percent of Goodman's annual investment globally, which Aanholt said, indicated 'there is lots of room to grow in the country'.
Goodman, whose major rivals include US-based ProLogis, would mainly set its sights on China's top cities such as Beijing, Shanghai and Guangzhou for expansion.
'In the medium term, we would probably move to second-tier cities,' the CEO said.
Goodman mainly develops and manages warehousing, distribution facilities, non-CBD offices and back-office spaces. In China, it will primarily focus on warehouses and distribution facilities, Aanholt said.
The demand for warehousing and distribution facilities will surge in the coming years in China, which Aanholt said is increasingly becoming the world's manufacturing hub.
'The goods manufactured must go through warehousing and distribution facilities to reach customers. The pie is becoming bigger and we want to have more of it,' Aanholt said, referring to China's booming logistics market.
China's logistics market, which includes freight, warehousing and distribution facilities, is expected to grow by almost 30 percent a year in the next three to four years, according to Trent Iliffe, director of global real estate money management and services firm Jones Lang LaSalle's Industrial Property team in China.
In addition to the $200 million properties it already owns in China, Goodman will soon double its portfolio in the next six to 12 months, when it is expected to complete transactions to acquire or develop another $200 million worth of projects, Aanholt said.
Goodman acquired a 48,000 square meter warehouse in Fengxian district in Shanghai for $15.5 million in March.
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