Goodman’s development activities continued to grow strongly and with our specialist capability, infrastructure and people in place, we have been well positioned to capitalise on the opportunities generated by high levels of customer and investor demand for Goodman’s development product across all of our operating markets. The undersupply of prime quality industrial space and the structural changes taking place globally are key growth drivers of our development business. They have enabled Goodman to enhance its overall market position during the year and remain one of the largest developers of industrial property in the world. We finished the year having secured $2.2 billion of new development commitments across 69 projects in 11 countries, with a forecast yield on cost of 8.7%. An overall leasing pre-commitment of 72% was achieved, with an average lease term of 6.8 years. A high 91% of these new development commitments are either pre-sold to, or pre-funded by, Goodman’s managed funds or third parties, demonstrating our ongoing focus on maintaining a low risk development approach.
View time lapse video of the construction of Goodman’s Reedy Creek Unit Estate in Sydney, Australia
Commenced developments include:
- a 133,997 sqm logistics centre in Mönchengladbach, Germany for e-retailer, Zalando, which is being constructed in two phases;
- also in Germany, a 95,545 sqm built-to-suit facility in Leipzig for third party logistics provider, DB Schenker, on behalf of its customer, BMW;
- a 51,355 sqm multi-customer logistics and distribution facility in Nagoya, Japan;
- in Tianjin, China, a 101,748 sqm built-to-suit warehouse and distribution centre for leading e-retailer, Vipshop;
- also in Western Sydney, a 43,150 sqm distribution centre for retail hardware chain,
- in the United Kingdom, a 10,223 sqm warehouse development for Kent County Council.
The strong global demand for prime quality industrial space has driven the growth of Goodman’s development work in progress to $2.3 billion, compared with $1.9 billion for the same period last year. This reflects
the benefits of our globally diversified platform, with developments underway across all
of our regions, including our recently entered markets of North and South America. The 69 projects we are currently undertaking around the world equate to 1.9 million sqm of new logistics and business space, with 92% being undertaken on behalf of our managed funds or third parties and 72%