Goodman Group (Goodman or Group) on the back of its Southern California property tour, advises that significant progress has been made on the roll-out of its development pipeline since its entry into the US industrial property market in June 2012. As a result, the Group is on track to achieve US$3 billion in assets under management in the short to medium term with strong growth forecast. Goodman’s US platform remains focused on the core logistics and industrial markets of Inland Empire, Greater Los Angeles, Northern New Jersey and Central Pennsylvania, and continues to execute its develop to hold strategy at this point in the property cycle.
Through its investment partnership with Canada Pension Plan Investment Board, Goodman North America Partnership (GNAP), the Group has total committed equity of US$2 billion, with a current development and investment pipeline of US$1.7 billion. This will provide 15.1 million square feet of prime warehouse and logistics space across 12 sites. Including sites in various stages of acquisition, this pipeline is expected to exceed US$3 billion in the short to medium term.
Goodman Group CEO, Greg Goodman commented: “We are excited by the growth outlook and momentum across our US platform. Particularly pleasing are the development sites we have secured in prime locations, together with the world class real estate we are currently developing. The quality of our focused product and service offering is highlighted by the high profile customers committing to these projects, including Georgia-Pacific at our recently completed Goodman Logistics Center Rancho Cucamonga in the Inland Empire West market.”
Brandon Birtcher, CEO of Goodman Birtcher North America, commented “We are now benefiting from the hard work that has gone into taking our key land sites through the entitlement process. Significantly, we have achieved this at a time when the key macro drivers in the markets where we operate, including economic growth, new supply and absorption rates, are providing a favourable operating environment for our business.”
Goodman’s US achievements include the completion of its first logistics centre at Oakland, California in May 2014, which was subsequently sold to a US investor in an off market transaction. To date, Goodman has completed 2.2 million square feet in the Inland Empire West market in Southern California and currently has three active projects in the Inland Empire West market and Greater Los Angeles, totalling 2.3 million square feet. Across these sites, commercial terms have been agreed for over 50% of the available space, with active enquiry and terms issued for the balance of the lettable area.
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