The Goodman Group has completed A$2.1 billion ($1.58 billion; €1.4 billion) of asset sales so far this fiscal year, and over $6 billion of assets sales over the last three years, according to its chief executive Greg Goodman.
In the Q3 fiscal year update issued on Thursday, the Sydney-listed logistics developer and fund manager said that the firm has made sales to fund its development pipeline.
“We have continued to show discipline in our deployment of capital, focusing on the strategic markets which will be long-term beneficiaries of urbanization and rising consumerism. Our asset rotation program is continuing in line with this strategy,” Goodman said.
Notable sales include the $640 million portfolio of industrial properties to Blackstone and selling out of the Goodman Europe Development Trust to its joint venture partner Gramercy in May last year.
Goodman currently sees development as the best means of accessing products in almost all markets at this point in the property cycle and currently has $3.5 billion of development work in progress.
“We’re continuing to realize the benefits of our strategy which has consistently been to invest and develop in quality locations, close to the consumer. We believe demand for quality industrial properties will be strongest in these locations and scarcity of land will see higher values, supporting sustainable long-term growth,” said Goodman.
The group’s total assets under management (AUM) is A$34.6 billion, and it manages over 400 properties across Greater China, Japan, Brazil, Europe, North America, New Zealand and Australia. The Greater China region represents the second biggest market for the group in Asia Pacific with A$7.4 billion in AUM. Australia tops the region with A$13.8 billion in AUM.