Chinese Online Class - Goodman set to pour $2-3b to China market

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BIZCHINA / Center

Goodman set to pour $2-3b to China market

By Zheng Lifei (China Daily)
Updated: 2007-07-03 09:41

Goodman, the world's second-largest industrial property developer, is
planning to pour $2 to $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
$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 $2 to $3 billion of industrial
properties (in China) under its management three to five years from now",
said David van Aanholt,CEOof 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.

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"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 $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
$200 million worth of projects, Aanholt said.

Goodman acquired a 48,000 square meter warehouse in Fengxian district in
Shanghai for $15.5 million in March.

(For more biz stories, please visit Industry Updates)

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