Goodman Group to Start A$451 Million of Australian Projects

Goodman Group, Australia’s biggest industrial property trust, said it plans to begin warehouse and office developments worth A$451 million ($470 million) across the country.

Goodman will start 210,000 square meters (2.3 million square feet) of projects after receiving pre-commitments from new and existing tenants, the Sydney-based group said in an e-mailed release, without providing a time frame for the plans.

“These new development projects demonstrate the strength of our product offering and the quality of our long-term customer relationships,” Jason Little, general manager for Australia at Goodman, said in the statement.

Goodman, which has announced partnerships with groups including WTorre Properties SA in Brazil and the Canada Pension Plan Investment Board to invest in the U.S., is also continuing to expand in Australia by boosting developments. The new projects will be concentrated in Sydney’s western and northwestern suburbs, and extend the group’s existing relationships with Wesfarmers Ltd. and Canon Inc., according to today’s statement.

Other tenants who have committed to space in the new developments include Bunnings Ltd. and Fujitsu Ltd., Goodman said. The group already has A$227 million of developments in progress, it said.

Goodman shares fell 0.4 percent to A$4.62 at the close of trading in Sydney. They’ve climbed 6.7 percent this year, compared with a 5.6 percent gain in the benchmark S&P/ASX 200 Index.

(Updates with closing share price in sixth paragraph.)
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