Goodman Group (“Goodman” or “Group”), a global owner, developer and manager of industrial real estate, is on track to deliver more than 175,000 sqm of new logistics space in France by the close of its 2016 fiscal year (FY2016) in June, with the retail sector being the main driver of Goodman’s strong development activity.
In the first half of FY2016 to 31 December 2015, the Group delivered over 40,000 sqm of space for Cdiscount, France’s leading online retailer. Additionally, Goodman has maintained its strong relationship with Carrefour and currently has more than 145,000 sqm of new space under construction for the retail giant. Separately, the Group is developing 30,000 sqm of logistics space for E.Leclerc, which is expected to be handed over in the second half of FY2016.
“The retail sector has been Goodman’s largest driver of growth in France. Most of the demand for new logistics space from the sector is attributed to our customers implementing new strategies to optimise their supply chains in order to reduce costs and improve product choice and delivery,” said Philippe Arfi, Goodman Country Director for France. “Consolidation and reorganisation of supply chains will remain a major trend going forward as price competition continues to dominate the retail sector.”
Strong development pipeline
Due to strong activity during its last fiscal year, ending 30 June 2015 (FY2015), Goodman currently has six projects under construction representing a total leasable area of approximately 206,000 sqm, of which 80% will be delivered by the end of its 2016 fiscal year. In addition to a number of retail customers, Goodman is also currently developing projects for third party logistics providers DB Schenker and Kuehne + Nagel.
Across Continental Europe, Goodman has signed lease agreements in nine different countries representing almost one million sqm of logistics space, of which 360,000 sqm represents new development projects. The Group signed leases for over 587,000 sqm of logistics space across its existing portfolio, with the vast majority of these deals representing lease extensions for Goodman’s current customers.
Additionally, the Group delivered over 300,000 sqm of new space and currently has over 720,000 sqm under construction, of which approximately 544,000 sqm commenced in the reporting period.
Global trends and results
Goodman continues to capitalise on the strong global demand for modern, high quality logistics space in prime locations. Goodman’s customers are seeking greater cost efficiencies within their supply chains and faster delivery from warehouse to end customer. The growth in ecommerce provides Goodman with opportunities to invest in proven logistics locations, as operators expand their fulfilment networks and seek to optimise last mile delivery times.
In the first half of FY2016, total assets under management reached €22.4 billion, up 10% compared to FY2015. Across the core investment portfolio the occupancy rate was maintained at 96%, while at the end of the half year, Goodman had 72 new development projects in progress, across 11 countries globally.
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