SYDNEY-Locally based Goodman Group has joined with Los Angeles-based Birtcher Development to invest in $1.5 billion worth of industrial property in North America. The team has already secured three properties, two in the Inland Empire, CA; one in Oakland, CA and another is under contract in the Lehigh Valley industrial market in Philadelphia.
Greg Goodman, CEO, said in a statement today that the US is the world’s largest, most liquid and transparent real estate market. The current market remains highly fragmented with obvious capital constraints, making it an attractive time to enter key logistics and industrial locations and access top tier development sites to deliver new investment product for global and local customers, he said.
The properties purchased include two development sites in the Inland Empire that can hold about 4.7 million square feet and will be complete by 2015, a 19-acre, 374,725-square-foot warehouse site in Oakland to be finished by 2013 and a 278-acre warehouse site in Philadelphia that can hold 4.7 million square feet, to be finished by 2016.
The partnership also plans to spend $800 million on new acquisitions and development, focusing first on the West Coast logistics hubs of Los Angeles, San Francisco and Seattle, and the East Coast markets of New York, New Jersey and Philadelphia. Other key logistics hubs based around inland ports, intermodals and tier one ports will also be considered. Brandon Birtcher, president and CEO, said in the statement that the partnership is assessing further development opportunities. “We expect to be in a position to announce these shortly,” he said.
Goodman is in the final stages of due diligence with an unnamed capital partner for the North America push. The company said it will fund its interest in the partnership from retained earnings and proceeds from the recycling of assets.
Goodman is one of the world’s largest developers and owners of industrial property, managing $19 billion in assets mostly in Europe and Asia. The company’s clients include Amazon, DHL and Coca Cola.
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