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Goodman Group on multi-billion yuan expansion drive in China
By Lydia Chen |
October 18, 2011, Tuesday
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Online Edition
Online Edition
GOODMAN Group, the property conglomerate that owns, develops and manages industrial space globally, said today that it plans to increase its investment in China 10-fold to 19 billion yuan (US$2.98 billion) within five years.
The ambitious plan is expected to grow the total investment of the largest industrial property group listed on the Australian Securities Exchange to 32 billion yuan in China – including the Chinese mainland, Hong Kong and Taiwan – Philip Pearce, managing director of the region, said in Shanghai this afternoon.
"With increasing urbanization and rising buying power of the middle class, consumption in China is very strong and will continue to strengthen," Pearce said. "However, there's a shortage of good quality warehouse and logistics facilities in China."
China currently holds a total of 550 million square meters of warehouse stock, according to the China Association of Warehouses and Storage.
Goodman estimates that less than 1 percent of the total supply comprises modern logistics space, Pearce said.
Demand for logistics facilities has grown in tandem with continuous income growth and urbanization. The United Nations forecasted that China's urbanization rate would grow from 46.6 percent by the end of 2009 to 51 percent by 2015, and the urban population would grow by 15.5 million per annum in the next five years.
Inland cities in the mainland such as Chengdu, Chongqing, Shenyang, Wuhan, Xi'an, Zhengzhou, Tianjin and Langfang will be key to Goodman's growth in China due to preferential policies and infrastructure investment.
The company is a strategic partner with China's sovereign investment giant China Investment Corp. CIC has an 18.2 percent of stake in Goodman.
The ambitious plan is expected to grow the total investment of the largest industrial property group listed on the Australian Securities Exchange to 32 billion yuan in China – including the Chinese mainland, Hong Kong and Taiwan – Philip Pearce, managing director of the region, said in Shanghai this afternoon.
"With increasing urbanization and rising buying power of the middle class, consumption in China is very strong and will continue to strengthen," Pearce said. "However, there's a shortage of good quality warehouse and logistics facilities in China."
China currently holds a total of 550 million square meters of warehouse stock, according to the China Association of Warehouses and Storage.
Goodman estimates that less than 1 percent of the total supply comprises modern logistics space, Pearce said.
Demand for logistics facilities has grown in tandem with continuous income growth and urbanization. The United Nations forecasted that China's urbanization rate would grow from 46.6 percent by the end of 2009 to 51 percent by 2015, and the urban population would grow by 15.5 million per annum in the next five years.
Inland cities in the mainland such as Chengdu, Chongqing, Shenyang, Wuhan, Xi'an, Zhengzhou, Tianjin and Langfang will be key to Goodman's growth in China due to preferential policies and infrastructure investment.
The company is a strategic partner with China's sovereign investment giant China Investment Corp. CIC has an 18.2 percent of stake in Goodman.
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