Goodman Group (Goodman or Group), a global owner, developer and manager of industrial real estate, has successfully concluded the first half of its 2016 financial year (FY2016), signing lease agreements for almost one million sqm of logistics space in Continental Europe, with over 720,000 sqm currently under construction, of which approximately 544,000 sqm commenced in the reporting period.
German market remains strong
In Germany, for the six months to 31 December 2015, the Group signed seven new development deals for a total leasable area of 260,000 sqm. Across its existing portfolio, the Group signed 12 lease agreement representing 440,000 sqm of logistics space during the period. The ecommerce sector continued to be the biggest driver of Goodman’s development activity in Germany.
Development: expanding footprint in key market
Between July and December 2015, Goodman had eight facilities with a total space of 355,000 sqm under construction in Germany.
During this period, the Group also handed over six new facilities comprising 170,000 sqm to its customers in Germany. Among others, retailers WMF Group and Hellweg were able to complete the consolidation of their logistics networks.
Additionally, it provided new facilities to two existing customers, delivering a 60,000 sqm distribution centre for online furniture retailer Home24 and a 15,000 sqm facility to logistics services provider Logwin.
The Group further committed to 260,000 sqm of new development in Germany during the half year, of which around 180,000 sqm is being constructed on converted brownfield sites. Conversion of such sites has been and continues to be an important part of Goodman’s development strategy.
Leasing: strong customer-retention and occupancy
In additional to signing a new lease agreement with Unicon for a 16,000 sqm facility near Bremen, Goodman also successfully renewed 11 leases with existing customers. The most notable lease extensions were with Amazon (69,000 sqm), Fiege (105,000 sqm) and Cinram (73,000 sqm).
“The results for the first half of the financial year demonstrate our capacity to successfully meet robust market demand for built-to-suit developments. Additionally we have reinforced our leading position and technical skill in converting old industrial land to provide our customers with quality properties in prime locations where land availability is scarce,” explained Jordan Corynen, Goodman Regional Director for Germany, Austria and Switzerland. “Moreover, the performance of our portfolio has resulted in one of the highest customer retention and occupancy rates on the market.”
Global trends and results
Goodman continues to capitalise on the strong global demand for modern, high quality logistics space in prime gateway cities.
In the first half of FY2016, the Group’s total assets under management increased to
€22.4 billion, up 10% compared to FY2015. The Group had 72 new development projects in progress across 11 countries globally. Across the core investment portfolio, occupancy was maintained at 96%,
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