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Goodman increases investment in Yangtze River Delta with acquisitions in Shanghai and Suzhou

Wednesday, 06 June 2012

Goodman Group (Goodman or Group), the integrated property group which owns, develops and manages industrial space, is pleased to announce that it has increased its investment in the Yangtze River Delta area with acquisitions in Shanghai and Suzhou.

Ocean Blue, Shanghai

Goodman has recently acquired Ocean Blue, an existing facility located in Shanghai Lingang Logistics Park, a key logistics hub in Shanghai. The acquired property sits on a 200,000 sqm site and comprises 59,000 sqm warehousing facilities and a 44,000 sqm container yard. The acquisition represents a rare sale-and-lease-bac k arrangement, with a 10-year lease to Ocean East International Logistics Co Ltd, a subsidiary of Damco, which specialises in global forwarding and supply chain management solutions.

Philip Pearce, Managing Director Greater China for Goodman, said, “Shanghai’s strategic location as a major logistics hub, has made it increasingly d ifficult to acquire land or existing facilities. We are extremely pleased with this acquisition and are committed to realising further opportunities to build our presence in this high growth area.”

Lingang is designated to serve Yangshan Deep Water Port, which is one of the two key shipping ports in Shanghai, together with Waigaoqiao. The port is well positioned as an international shipping centre for Northeast Asia.

Brown field site, Suzhou West

In a separate transaction, Goodman has acquired a 58,000 sqm workshop facility in Suzhou West. The property is located in Suzhou National New & Hi-tech Industrial Development Zone, one of the specially designated regions for technological and industrial development with close proximity to Wuxi and Shanghai.

The brown field site has a total area of 147,000 sqm, including the existing workshop facility and adjacent land for development. Goodman plans to redevelop the entire site which will provide 95,000 sqm of prime logistics space on completion in the second quarter of 2013.

Mr Pearce said, “Suzhou is an established logistics hub within the Greater Shanghai region with a strong manufacturing base, and we are very keen to expand our presence in the Shanghai - Nanjing corridor. We see a significant opportunity to supply warehouse facilities of international standard to meet the strong demand from Shanghai and capitalise on the rapid growth in the Suzhou and Wuxi markets.”

Goodman currently has 400,000 sqm of development in progress and a development target of 600,000 sqm for the next 12 months.

Other recent transactions include:
  • Acquisition of a 66,700 sqm land site in Wuqing, Tianjin which will be developed into a 42,000 sqm build-to-suit facility for Moonbasa, a major online retailer in China. Construction is expected to complete in March 2013.
  • Acquisition of 27 hectares of land in Beichen District in Tianjin to be developed into a logistics park with a total area of 167,000 sqm. Phase 1, comprising three warehouses with a combined 59,000 sqm, is expected to complete in May 2013.
  • Masterplanning of a 4.25 sq km premier mixed-used property development in Guangyang Development Incubation Park, Langfang. Infrastructure construction will commence in the second half of 2012, with the entire project to be developed over the next seven to 10 years.
Goodman has invested RMB3.2 billion in mainland China as at June 2012 and plans to invest a further RMB2.1 billion over the next 12 months. The Group has a presence in Shanghai, Beijing, Chengdu and Tianjin, and plans to expand into inland cities such as Chongqing, Xi’an and Zhengzhou, where there is high growth potential for the logistics industry.

Mr Pearce said, “We remain optimistic on China’s growth outlook, which we expect to be the main driver of global economic growth over the next five years. We see demand for modern logistics space continuing to surge in tandem with the rise in income and urbanisation. This demand is further boosted by the rapid development of e-commerce in China, which is currently growing at 75% per annum. ”

“At the same time, supply of high quality logistics space remains limited, with modern facilities comprising only about 1% of the 550 million sqm storage space on the mainland. The supply-demand imbalance is expected to continue, providing the opportunity for logistics assets to perform strongly, through appreciation in capital values and ongoing rental growth.” Mr Pearce added.


- Ends -

For further information, please contact:

Goodman
Besy Leung
Marketing Director, Asia
Tel + 852 2249 3149

Citigate Dewe Rogerson
Jasmine Yap
Co-Managing Director
Tel +852 3103 0108

About Goodman


For more information please visit  www.goodman.com