Goodman, the world's second-largest industrial property
developer, is planning to pour US$2 to US$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 US$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 US$2 to US$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 US$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 US$200 million worth of projects, Aanholt said.
Goodman acquired a 48,000 square meter warehouse in Fengxian
district in Shanghai for US$15.5 million in March.
(China Daily July 3, 2007)