Thursday, 13 November 2014
Goodman today announces the continued momentum and successful execution of its targeted development-led growth strategy in Japan, driven by strong property fundamentals and the ability to acquire prime sites in strategic locations via off-market transactions. Demand for Goodman’s modern, high quality logistics properties remains strong as demonstrated by the significant pre-leasing activity across all its projects.
Summary of key highlights:Goodman Obu, Nagoya
The Goodman Japan Core Fund is well positioned, with a high quality modern portfolio, strong property fundamentals and 100% occupancy. Institutional investor support for the fund remains strong, as evidenced by the recent capital raising success. Investors are attracted to the Fund’s history of stable returns and the benefits provided by Goodman’s own+develop+manage business model, providing an identified pipeline of high quality growth opportunities. The Goodman Japan Core Fund will grow to over JPY120 billion, following the completion of its acquisition of Goodman Obu and Goodman Mizue.
The Goodman Japan Development Partnership was established in 2012 and has a strategy of selectively undertaking development projects in strategic logistics in Japan. Goodman works closely with its customers from the beginning of a project to provide a tailored, high quality property solution to meet the dynamic needs of their businesses. The benefits of this close relationship with its customers and unique ability to source attractive land via off-market transactions is demonstrated by the success that the partnership has enjoyed through the substantial pre-leasing of all its developments prior to construction completion.
Goodman’s Group Chief Executive Officer, Mr Greg Goodman said, “Our team in Japan continues to successfully execute its development-led approach. With the off-market acquisition of prime sites in strategic locations, development of world-class logistics facilities and strong pre-leasing activity, we are able to provide ongoing growth opportunities for our investment partners in the Goodman Japan Core Fund. The launch of Goodman Business Park Chiba today, with a 25% pre-lease over the first stage, also provides the Goodman Japan Development Partnership with an attractive pipeline of opportunities to develop in the medium-term in response to significant customer demand.”
Paul McGarry, Chief Executive Officer of Goodman Japan said, “Abenomics and the positive momentum underway in the lead up to the Tokyo 2020 Olympics have created both opportunities and challenges for our customers in Japan. Some of these issues include high land prices and construction costs, together with a chronic shortage of labour in key sectors, such as transport and logistics.
“The launch today of Goodman Business Park Chiba offers a solution to these challenges, with the large-scale, master planned logistics and business park providing affordable rents and a high level of employee amenity for a range of complimentary occupiers. Key features include cafes, retail, bus services, a childcare service to facilitate greater female participation in the work force, parks and open space in an attractive, densely populated high growth corridor close to Tokyo and major transport infrastructure”.
-Ends-For further information, please contact Goodman: