International: Goodman Grows in China

The industrial property developer is rolling up its sleeves for the construction of a sizable prime logistics space in the world's most populous country.

By Adriana Pop, Associate Editor

Goodman Hannan Logistics Park, Wuhan Hubei Province
Goodman Hannan Logistics Park, Wuhan Hubei Province

Industrial property developer Goodman Group has signed two new leases with French sports apparel and equipment retailer Decathlon for the construction of approximately 1.69 million square feet (157,000 square meters) of prime logistics space in China.

Under the agreements, Goodman will develop a build-to-suit facility of about 915,000 square feet (85,000 square meters) at Goodman Hannan Logistics Park in Wuhan, Hubei Province. The company will construct a second build-to-suit project of 775,000 square feet (72,000 square meters) at Goodman Hunnan Logistics Centre in Shenyang, Liaoning Province.

The project at Goodman Hannan Logistics Park will be built in two phases, with construction scheduled for completion in December 2015 and June 2016, respectively. It comprises four single-story warehouses Decathlon will use as main distribution centers for the region, which could lead to the establishment of a major hub for transporting goods between Europe and Asia.

The Goodman Hannan park is located in Hannan District, Wuhan city, which borders six other provinces and cities in Central and Western China. It offers excellent accessibility to the expressway network, which connects it to surrounding cities, making it a key logistical junction in the Central China region.

Meanwhile, the project at Goodman Hunnan Logistics Centre will be developed in two phases and should ready for occupancy by March 2017. It will also include four single-story warehouses, which Decathlon will use as its major distribution center in north-east China.

Strategically located in Shenyang Hunnan E-Commerce Industrial Park, the Goodman Hunnan center offers easy access to downtown Shenyang and Shenyang Airport.

“Goodman’s outlook on the China market is positive. As demand for prime logistics space continues to be robust, it is providing us with opportunities to expand our footprint across the mainland into selected second-tier cities. We fully intend to invest further in the market for the long-term,” Philip Pearce, managing director Greater China for Goodman, said in a news release.

Goodman Group is a global integrated property group, which owns, develops and manages industrial properties throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil.

The company currently has nearly 8.4 million square feet (780,000 square meters) of developments underway in China, which are rising in key cities including Shanghai, Nanjing, Shenyang, Tianjin, Chongqing, Chengdu, Wuhan, Xi’an, Guangzhou, Suzhou, Qingdao, and Hefei, and a development target of about 8.6 million square feet (800,000 square meters) for the next 12 months.

Goodman has been keeping busy as of late. Just last month, the leading global industrial property group signed a deal with DHL Supply Chain in Australia.