Monday, 04 February 2013
Goodman Group (Goodman or Group) today announces that it will commence 210,000 sqm of new industrial and commercial development projects across key Australian markets, with a forecast end value of approximately $451 million. This is in addition to the $227 million of development works currently in progress.
Jason Little, Goodman’s General Manager Australia said “Goodman Australia’s development team has finished the 2012 year strongly, with a number of key customer pre-commitments across NSW and Victoria. These new development projects demonstrate the strength of our product offering and the quality of our long-term customer relationships, and are evidence of our ability to deliver a flexible range of property solutions encompassing industrial, bulky goods/retail and commercial developments.”
The pre-commitments are on behalf of new and existing customers, including:
Existing customer Bunnings, has committed to a new 43,150 sqm distribution centre with a 10 year lease term to service their store network in metropolitan and regional NSW. The facility to be located at Interchange Park, Eastern Creek, includes a dual sided 42,600 sqm warehouse with full drive around capability and 550 sqm of office. The site also has a further 21,930 sqm of land available for future expansion. Development is scheduled to commence in early 2013, with completion expected in March 2014, and an estimated end value of $65 million.Mr Little commented, “Wesfarmers is one of Goodman Australia’s largest customers occupying more than 479,700 sqm across our Australian portfolio, and we are pleased to undertake this significant and exciting new development on their behalf.”
Goodman will separately build Canon’s new Australian head office, with Canon pre-leasing 11,160 sqm at The Park in North Ryde, as part of a new five level, 13,129 sqm office building, to be developed on the prominent corner of Lane Cove and Talavera Roads. The new office development will include car parking, a gym and a café, and is designed to achieve a 4 Star Green Star Green Building Council rating and a 4.5 star NABERS energy and water rating. The office building has an estimated end value of $75 million and is scheduled for completion in April 2014.Mr Little said “We are pleased to further extend our relationship with Canon which fulfils their head office requirements and assists with their third party logistics needs in Sydney. The new office development is a welcome addition to The Park and we anticipate strong enquiry for the remaining 1,765 sqm of office space, given the high profile location and large flexible floor plates.”
Bantex Australia, a leading manufacturer and supplier of office products, has pre-committed to a 9,120 sqm warehouse and office facility with a 10 year lease term at Interchange Park, Eastern Creek. The Bantex pre-commitment underpins a 34,200 sqm industrial unit development at Interchange Park, which also comprises an adjoining two unit warehouse and office facility totalling 16,540 sqm and a separate two unit facility totalling 8,540 sqm. The total industrial development has an end value of $47 million and is due for completion in June 2013.
In North Ryde, Goodman will develop a new 11,631 sqm six level office tower, designed to achieve a 5 Star Green Star Green Building Council rating and a 5 star NABERS energy and water rating. Fujitsu has signed a 10 year lease for 9,452 sqm of office space and will relocate from their two existing North Ryde office premises. The development site, located at the western end of the estate at 112-118 Talavera Road was recently purchased by Goodman Trust Australia (GTA). The new office tower has an estimated end value of $63 million and is scheduled to reach completion in April 2014. It will provide 144 additional basement car spaces and a second café for the estate.
Specialized Australasia has signed a five year pre-lease for a 7,695 sqm warehouse and office facility at WestHub Industrial Estate in Laverton North, Victoria. Construction commenced in December 2012 and is scheduled to complete in April 2013. The global bicycle equipment company is new to the Goodman portfolio and joins customers including Woolworths, Linfox and Sabco already located at the estate.The total combined completion value of the new development activity will contribute approximately $451 million to the Australian portfolio. The continued growth in development activity can be attributed to the strength of Goodman’s existing customer relationships, the high demand for prime logistics and business space, and the strategic location of our development pipeline in highly sought after regions across Sydney and Melbourne.
As detailed in a separate announcement made by Brickworks Limited on 31 January 2013, a 62 hectare site at Oakdale Industrial Estate in Eastern Creek has been sold into a 50/50 partnership between Goodman and Brickworks. Goodman and Brickworks joint ventures now control over 100 hectares of land in the Eastern Creek area. The transaction extends Goodman’s successful partnership with Brickworks and increases its capacity to undertake further development of high quality logistics and industrial property over the long-term.“The successful finish to the 2012 calendar year provides Goodman with significant momentum as we start 2013 and we continue to assess a range of opportunities consistent with the strong customer and investor demand for prime quality industrial and business space.” Mr Little concluded.