Goodman Strengthens China Development Pipeline, Securing Major Land Sites in Kunshan

HONG KONG, Sept. 21, 2011 /PRNewswire-Asia/ -- Goodman Group (Goodman or Group), the integrated property group which owns, develops and manages industrial space, today announced that it has secured two new land sites in Kunshan with associated development opportunities:

Philip Pearce, Managing Director Greater China for Goodman commented, "The acquisition of these two sites has significantly increased our land bank in Kunshan, a highly sought-after destination for logistics providers, given its close proximity and connectivity to Shanghai and Suzhou. The Jinxi and Yushan sites, together with our newly completed development in Lujia, will enable Goodman to deliver approximately 140,000 sqm of prime logistics space to meet the strong demand from our customers."

The first phase development of the 120,000 sqm site located in Jinxi Econ-Industrial Park will be a tailored facility to be developed for DB Schenker. The Group intends to develop the site in two phases, offering a total of 74,000 sqm of prime logistics space. The first phase is expected to be completed by August 2012.

"DB Schenker is one of our global customers and we are delighted to expand our relationship into China. The project demonstrates the trust that our customers have in our ability to turn industry-specific requirements into tailor-made real estate solutions in this fast growing market," Mr Pearce remarked.

The Jinxi site has an expected completion value in excess of RMB200 million (US$31 million) and it is currently owned by the Group.

Goodman, on behalf of its China fund, Goodman China Logistics Holding (GCLH), separately acquired a site at Yushan, comprising a warehouse facility with attached development land. The facility comprises an existing 26,000 sqm warehouse which is currently fully leased to Toyota, Kunshan Huadong Warehousing and Transportation (a local third party logistics provider) and Jiayou (a TV retailer). There is an additional 53,000 sqm of land available for future development. Goodman is planning to develop two separate warehouses, providing a combined 29,000 sqm of additional space. The entire development has an expected completion value of approximately RMB200 million (US$31 million).

Goodman completed its first development in Kunshan on behalf of GCLH in May 2011, a 38,100 sqm logistics centre at Lujia. Over 80% of the completed development has been pre-leased to two major customers, Suzhou Xinli Logistics and Shanghai Benchmark Warehousing & Logistics, who have committed to 19,000 sqm and 12,000 sqm respectively.

"Goodman has a number of development projects currently underway in other parts of China, including Shanghai and Beijing, totalling more than 150,000 sqm. With our development pipeline and secured land sites of 2 million sqm, the Group is well positioned to capture the strong demand in China," Mr Pearce concluded.

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SOURCE Goodman Group