Goodman Group (Goodman or the Group) today announced that it has acquired a warehouse facility with attached development land in Beijing that has the potential to provide over 40,000 sqm of total gross floor area (GFA), with a total forecast value of approximately RMB150 million. The acquisition underlines the Group's strengthening commitment and confidence in China’s industrial property sector.
Goodman acquired the facility (formerly known as Kangli Warehouse Facility) for RMB62.5 million. The facility comprises an existing 10,654 sqm warehouse which is currently leased to Bank of China and an additional 48,055 sqm of land available for future development. The Group is planning to develop two new warehouses, providing up to a combined 30,000 sqm of additional space.
When the development is completed in the second quarter of 2012, Goodman will deliver an estate that provides an estimated total GFA of over 40,000 sqm in the Beijing market.
Strategically located in the Beijing Airport Logistics Park (BALP), the facility is immediately adjacent to the Beijing Capital International Airport and 25km from the capital city’s Central Business District. It is located close to the entrance of the Airport North Expressway and the 6th Ring Road, with convenient access to various highways connecting to other major surrounding cities.
Philip Pearce, Goodman’s Managing Director for Greater China said, "This acquisition provides Goodman a platform for further growth in the Bohai Region and will complement our planned investment in Langfang. It is also a further indication of our growing and long-term commitment to the China market."
“The development land available with this property also gives us the opportunity to develop international grade, high efficiency warehousing space that is currently in short supply in Beijing. Growing domestic consumption is increasing demand for quality warehousing space from domestic and foreign retailers and logistics operators in China, which in turn is reflected in the Beijing government's forecast of 12% annual growth for the logistics sector. In Beijing alone, there is a strong demand from local industries including the electronics, automotive and medical sectors”, Mr Pearce commented.
In 2010, the Group signed a Memorandum of Understanding with the Langfang Municipal Government to participate in the development of a five square kilometre premier business and logistics hub for the greater Beijing and Tianjin area in northern China.
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