Posted by Rita Mu
The Goodman Group has announced plans to build a new logistics and distribution centre in the Osaka Bay region of Japan.
The new 130,000 square metre logistics and distribution centre will be located in an established industrial area and is estimated to be worth AU $300 million on completion.
The Group’s chief executive officer, Greg Goodman, said modern logistics and distribution facilities in Japan were scarce.
“In Japan, modern logistics and distribution facilities are tightly held and investment yields have been firming, so we are focused on leveraging the experience and industry relationships in our Japanese business to pursue mainly organic growth, rather than seeking to acquire completed assets,” he said.
“We have determined that we can generate the best risk-adjusted returns in Japan through the development of our own modern, investment grade logistics and distribution facilities, and we are backing this with a strong financial commitment from the Group.”
Construction of the Osaka Bay project is expected to begin in 2012.
The Group is currently seeking additional development and acquisition opportunities in the logistics markets of Toyko and Osaka. These opportunities, combined with the Osaka Bay development project, have an estimated total value of AU $1.25 billion, according to the company.