Goodman Commences Rollout of a US$1.4 Billion US Development Pipeline, with Launch of a $US150 Million Southern California Project

PR56958

LOS ANGELES, June 5, 2014 /PRN=KYODO JBN/ --

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.

(Photo: http://photos.prnewswire.com/prnh/20140604/94082 )

Key points:

    +  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.

About Goodman Birtcher

For further information, visit: www.goodmanbirtcher.com

About Goodman

For further information, visit: www.goodman.com

For further information, please contact Goodman Birtcher:

Brooke Birtcher Gustafson

Vice President Development Operations

Tel. +1-949-407-0139

SOURCE:  Goodman Group