Tuesday, 17 February 2015
Goodman’s primary focus is on the quality of its assets and investing in customer relationships to understand their businesses and deliver property solutions that cater for their diverse and changing requirements. This was demonstrated in the half year with 1.7 million sqm of space leased and €0.9 billion of new development commitments secured across Goodman’s global markets.
Goodman’s Group Chief Executive Officer, Mr Greg Goodman said, “Goodman’s customer focus and global relationships are also providing significant ongoing opportunities, by leveraging the Group’s expertise and capability to provide modern, high quality property solutions that enable customers to fulfil their changing business needs and realise greater operating efficiencies. This is expected to be a key driver of second half FY15 demand across Goodman’s development activities, combined with the continued performance of our quality stabilised portfolio.”
Prime assets in the Benelux region
Goodman demonstrated the strength of its portfolio by achieving near 100% occupancy of its logistics space in Belgium and the Netherlands. This was achieved due to high demand for modern logistics facilities in prime locations. These occupancy rates are contrasted against the market average of 97% and 93% for Belgium and the Netherlands, respectively. These results were bolstered by new leases and lease renewals in both markets representing approximately 100,000 sqm.
For example, two years prior to the end of the lease term, Goodman secured a five year lease extension with Bunzl-King Belgium, by offering a range of cost-saving sustainability solutions, including the installation of LED lighting, overhead lighting motion sensors and infrared heating. These measures are predicted to reduce electricity costs by 70% and heating costs by 50%.
“The lease renewal with Bunzl-King illustrates the quality of the properties in our portfolio and our property management expertise, which have been crucial in achieving near 100% occupancy in the Benelux,” commented Kim Cornille, Goodman Country Director for Belgium.
Prime space for growth in Belgium and the Netherlands
In 2015, Goodman will be looking to expand its assets under management through its available land for development. Goodman manages 44,000 sqm at its Puurs Logistics Centre along the Antwerp-Brussels axis, with the potential to develop up to 25,000 sqm on the remaining land. Additionally, the Goodman Turnhout Logistics Centre, with good connections to the port of Antwerp and several cities in the Netherlands, has capacity for a new facility of up to 7,600 sqm.
Goodman has two prime land banks ready for development in the Dutch market located in Aalsmeer, near Schiphol, and Venlo in the province of Limburg. The Aalsmeer site is immediately available for the development of a facility up to 15,000 sqm, with the possibility of expansion in the future. Goodman will seek to grow the Venlo North Logistics Centre by up to an additional 18,000 sqm, adding to its current 161,000 sqm.
Benelux outlook for 2015
Based on stable market conditions, Goodman will seek to grow its portfolio through developments and acquitions. Goodman will look to the market to identify potential additional land to acquire in prime locations in Belgium and the Netherlands. This is likely to include converted brownfields in strategic locations to develop modern logistics space.
“Demand in both Belgium and the Netherlands for modern logistics facilities in prime locations is expected to remain strong throughout the rest of 2015, which will help support our expansion plans,” explained Tia van Beek, Goodman Country Director for the Netherlands. “A new component of our development strategy will be our ability to offer a comprehensive Benelux solution to our customers.”