Goodman Commences Rollout of a US$1.4 Billion US Development Pipeline, with Launch of a $US150 Million Southern California Project
LOS ANGELES, June 5, 2014 /PRNewswire/ -- Goodman Group (Goodman or Group), Australia's largest listed industrial property group, with a global network spanning 33 cities and US$24.5 billion (A$26.4 billion) of assets under management, today announces that its wholly owned North American subsidiary, Goodman Birtcher has launched the development of a new US$150 million logistics center at Rancho Cucamonga in the Inland Empire West market of Southern California. The new project will be marked by an official ground breaking event and also signals the launch of a 15 million sq ft (1.4 million sqm) development pipeline in key US logistics markets, which will result in US$1.4 billion of development work in progress from Goodman Birtcher's operations over the next three years. It also follows the recent practical completion of Goodman Logistics Center Oakland, a new US$45 million logistics facility in the Bay area's logistics hub.
- Executing on North American development-led investment strategy of prime quality logistics and industrial assets in key logistics hubs to address limited supply.
- Secured eight prime sites in key logistics markets, including California, Pennsylvania and New Jersey, providing a 15 million sq ft (1.4 million sqm) development pipeline.
- North America expected to become a key market for Goodman over the next four years, contributing significantly to the Group's US$24.5 billion (A$26.4 billion) of assets under management.
- Southern California development portfolio comprising approximately 343 acres of land across five locations in infill Los Angeles and the Inland Empire West markets.
- The five Southern California development projects provide a total combined completion value of US$775 million.
- Development commenced on a 74.9 acre site at Rancho Cucamonga in the Inland Empire West of a 1.6 million sq ft (148,000 sqm) logistics center, comprised of two facilities.
- Letter of intent signed for a portion of the space at Goodman Logistics Center Oakland, with customer negotiations being finalised on the remaining space.
US strategic progress
Consistent with its development-led strategy in North America, Goodman Birtcher has progressed through intensive land procurement and much of the planning phases since its launch in the US market in June 2012. This has enabled Goodman Birtcher to secure strategically located, class A sites in key logistics locations near urban centers and key transport infrastructure across its primary target markets of California, Pennsylvania and New Jersey.
Goodman Group CEO, Mr. Greg Goodman said: "We are very pleased with the progress being made in our North American business. Our focus over the past two years has been to assemble a high quality portfolio of class A sites in our target locations and we are now ready to commence the rollout of a significant development program, at a time when key US investment demand drivers are recovering and the supply of high quality, big box warehouse space remains limited."
Goodman currently has approximately US$2.5 billion (A$2.7 billion) of development work in progress globally, with North America expected to contribute around US$1.4 billion to the total development workbook over the next three years.
"As a long-term owner of high quality assets, with capital in place through our partnership with Canada Pension Plan Investment Board, and the ability to draw on our global expertise, development capability and customer relationships, Goodman Birtcher is well positioned to provide our North American customers with a flexible and innovative product and service offering," Mr. Goodman added.
Goodman Logistics Center Rancho Cucamonga
Goodman Birtcher acquired the 74.9 acre property at Rancho Cucamonga in 2012 and is developing a new logistics center offering a total of 1,589,946 sq ft (148,000 sqm) of prime quality logistics space at the strategically located site. The logistics center has been named Goodman Logistics Center Rancho Cucamonga and will comprise two cross-dock facilities of 555,664 sq ft (52,000 sqm) and 1,034,282 sq ft (96,000 sqm), which are expected to complete in March 2015 and May 2015 respectively.
Brandon Birtcher, CEO Goodman Birtcher said: "We are very pleased to be launching the development of Goodman Logistics Center Rancho Cucamonga. The project positions us well to take advantage of the significant demand for class A logistics and warehousing space in the key Inland Empire West market, particularly for Big Box facilities of greater than 500,000 sq ft (46,000 sqm)."
"With 1.6 million sq ft (148,000 sqm) of new space under construction, Goodman Logistics Center Rancho Cucamonga offers the only distribution warehouse space of this size in the local market, while its flexible design is capable of satisfying the requirements of a broad range of customer groups."
The two cross-dock facilities being constructed have a flexible and sustainable design, catering to a range of potential uses and would be well suited for logistics and e-commerce customers. Both buildings will offer a clear height of 36 feet (11 metres), ample trailer parking stalls, superior site access and manoeuvring space, with generous truck court depths of a minimum 185 feet (56 metres).
Goodman Logistics Center Rancho Cucamonga is well located in close proximity to transport infrastructure, being less than one mile from the 15 freeway, less than two miles from the 10 freeway and seven miles from Ontario International Airport.
A ground breaking event to launch its first wave of developments in Southern California, including Goodman Logistics Center Rancho Cucamonga, will take place at the Auto Club Speedway in Fontana on Wednesday, 4 June. In attendance will be the Mayor of Rancho Cucamonga, Mr. Dennis Michael, together with city council members, local municipal and planning agencies, brokers and all parties directly associated with the development.
Other Southern California development opportunities
Goodman Birtcher has built a substantial land bank in the key Southern California logistics market, providing a range of opportunities to benefit from the limited supply of high grade, large format industrial space. In addition to Rancho Cucamonga, a further 269 acres of developable land is available across a number of sites, which are currently at different stages of the planning approval process.
Identified projects in Southern California include:
- Goodman Logistics Center Fontana -- a recently acquired 30 acre site in Fontana for the planned development of a single 639,000 sq ft (59,000 sqm) logistics facility.
- Goodman Commerce Center Eastvale -- a 181 acre site located within the City of Eastvale and adjacent to the 15 freeway. It offers a mixed-use development plan providing a variety of potential uses including retail, medical, hospitality, office, business park and light industrial totalling 3.7 million sq ft (344,000 sqm).
- Goodman Logistics Center Santa Fe Springs -- a master planned 53 acre site offering a planned total of 1.2 million sq ft (111,000 sqm) of warehouse distribution facilities across three buildings.
- Goodman Logistics Center Compton -- a 5 acre site offering the planned development of approximately 102,000 sq ft (9,500 sqm) logistics facility, located just two miles from the 110 and 105 freeways.
"The range of projects we are bringing to the Southwest market will enable us to deliver up to a total of 6.2 million sq ft (576,000 sqm) of new class A industrial product and facilitate the rollout of our quality service offering for customers across the region," Mr. Birtcher said.