Goodman confirms 468,000 sq ft development at Andover and agrees investment opportunity to Legal & General Property for GBP 47 million

HONG KONG, April 12 /PRNewswire-Asia/ -- Goodman, a leading global provider of industrial and business space, will commence development of a pre- let 467,891 sq ft (43,484 sqm) regional distribution centre (RDC) at Andover Commercial Park (formerly Andover Airfield), for The Co-operative Group on a 20 year lease. Goodman has also transacted the forward funding and acquisition of this development with Legal & General Property (LGP). This announcement follows the receipt of planning approval by Test Valley Borough Council on 28 January 2010.

The distribution centre to be developed for The Co-operative Group, the UK's fifth largest food retailer, will achieve a BREEAM rating of "Very Good". It will be positioned at the north western corner of the former airfield site, with direct links via the A303 to London and the South West. Construction will commence in May 2010.

Following its acquisition of the Somerfield supermarket chain in 2009, the new warehouse will enable The Co-operative Group to reshape its distribution network in this part of Southern England.

Charlie Walker, Senior Fund Manager at Legal & General Property, comments: "This is an exceptional and rare investment opportunity and we are very pleased to be working with a specialist partner such as Goodman. With a high spec design, excellent sustainability credentials, strong logistics location and indexation through the lease, the asset, ticks all the boxes for us."

Goodman's Group Chief Executive Officer, Greg Goodman, said "This significant development is one of the largest pre-let transactions to be announced in the UK over the last 12 months and we are pleased to be undertaking it on behalf of The Co-operative Group."

"We are experiencing renewed customer and investor demand in the UK and across our markets around the world. This transaction demonstrates our ability to successfully deliver on our pre-let and pre-funded development strategy, with high quality investment partners such as LGP," Mr Goodman added.

Andover Commercial Park extends to 100 acres with the potential to accommodate a further 1.2m sq ft development for a mix of uses including distribution, office, hotel and retail. The location provides excellent access to London and the UK's motorway network and benefits from good access to a skilled local workforce. Goodman will shortly commence marketing the site, with fully serviced plots available by the end of the year.

Goodman was represented by Savills and Carter Jonas, M3 acted for LGP and Thomas Round acted for The Co-operative Group.

    Notes to editors:

    About Goodman Group (ASX: GMG)
    Please visit: http://www.goodman.com

    About Legal & General Property (LPG)
    Please visit: http://www.lgim.com/property/

    For further information on Goodman please contact:

     Joanna Reid
     Tel:   +44-20-7269-9348
     Email: [email protected]

     Richard Stocks
     Tel:   +44-20-7269-9348
     Email: [email protected]

    For further information on Legal & General Property, please contact:

     Dido Laurimore/Jamie Robertson/Olivia Goodall
     Financial Dynamics (for Legal & General Property)
     Tel:   +44-20-7831-3113

     Sarah Rees
     Legal & General Property
     Tel:   +44-20-3124-2700

SOURCE Goodman