Industrial giant rides online retail surge to major lift in values
The dramatic switch towards online shopping prompted by the coronavirus pandemic is driving a sustained lift in the value of industrial property, as retailers take up more warehouse space to deliver goods to customers.
Big investors are also chasing an exposure to the area and in one of the latest moves, global industrial powerhouse Goodman Group has just raised $1bn of fresh equity for its main wholesale trust.
The fund is the largest such vehicle in Australia and will assist with Goodman’s expansion, which includes new space for the likes of online retailer Amazon, for which it is building a robot-run site in Sydney.
Goodman boss, billionaire Greg Goodman, is, however, taking a cautious stance, and will first wind down debt in the fund.
It will then be well-positioned to expand and has first rights over Goodman’s extensive development pipeline on the outskirts of major cities on the eastern seaboard.
The group is also being challenged by Charter Hall, Dexus, international groups like Logos and ESR, and a host of Singaporean groups in building new warehouses.