Goodman Group, a global owner, developer and manager of industrial real estate, has successfully concluded the first half of its 2016 financial year (FY2016), signing lease agreements for almost one million sqm of logistics space in Continental Europe, with over 720,000 sqm currently under construction, of which approximately 544,000 sqm commenced in the reporting period.
In Central and Eastern Europe (CEE), the Group’s portfolio increased to 944,000 sqm of logistics space, up 35 percent from the year before. The largest contribution to Goodman’s development in the region came from Poland, with the Group’s portfolio growing to 702,000 sqm. Goodman manages a further 242,000 sqm in Hungary, the Czech Republic and Slovakia. During the first half of FY2016, Goodman concluded lease contracts in the CEE region for a total of 77,000 sqm.
“Goodman’s development in the past half year in the CEE region reflects the trend of rising demand for best-in-class logistics facilities in prime locations. Our results confirm that we are one of the leaders in the market and well positioned to expand our regional footprint even further,” said Błażej Ciesielczak, Goodman Regional Director for Central and Eastern Europe. “The robust leasing activity at our existing properties demonstrates the quality of our portfolio, our customer-centric approach to property management, and the strength of our customer relationships.”
In the past half year, Goodman completed the construction of 94,000 sqm of warehouse space in the CEE region, of which 79,000 sqm was in Poland. The remaining 15,000 sqm was handed over at the Group’s flagship Goodman Senec Logistics Centre in Slovakia.
In Poland, Goodman delivered the first two facilities at its new Goodman Wrocław IV Logistics Centre for a total space of almost 40,000 sqm. At the Pomeranian Logistics Centre, adjacent to the Gdańsk Deepwater Container Terminal, Goodman delivered 46,800 sqm.
In the coming months, Goodman will continue to grow its assets under management in Poland, by over 50,000 sqm, including a 17,700 sqm expansion of a logistics centre for ILS, a member of the Inter Cars Group.
In Hungary, Goodman will continue to expand its portfolio through new developments at its land banks near Budapest. At its logistics centres in Gyál and Üllő, Goodman has the capacity to construct a further 130,000 sqm of logistics space.
Ongoing development of the Goodman Senec Logistics Centre in Slovakia will enable the Group to deliver an additional 77,000 sqm of space. Goodman has experienced steady growth at the logistics centre over 2015, with additional projects in the pipeline.
In the first half of FY2016, Goodman signed contracts to lease 62,000 sqm of existing space in the CEE region. Goodman’s leasing activity has been particularly strong at Goodman Kraków Airport Logistics Centre, leasing 26,000 sqm, and at Goodman Toruń Logistics Centre for 24,600 sqm of logistics space.
Goodman maintained 100 percent occupancy in the Czech Republic and Hungary, having signed a 7,700 sqm lease extension with Bosal at Goodman Kecskemét Logistics Centre.
Goodman maintains an overall occupancy of 98 percent across its Continental European portfolio, and a customer retention rate of over 80 percent.
Goodman continues to capitalise on the strong global demand for modern, high quality logistics space in prime gateway cities. In the first half of FY2016, the Group’s total assets under management increased to €22.4 billion, up 10 percent compared to FY2015. The Group had 72 new development projects in progress across 11 countries globally. Across the core investment portfolio, occupancy was maintained at 96 percent.
