Goodman eyes expansion as Hong Kong hub opens
THE Goodman Group has opened its Interlink centre in Hong Kong which will serve as its integrated Asian hub for expansion into the region.
THE Goodman Group has opened its Interlink centre in Hong Kong which will serve as its integrated Asian hub for expansion into the region.As part of what it calls its capital recycling program, Goodman last year sold a 50 per cent stake in the project, with the cash to be funnelled into new development opportunities across China and Japan.The chief executive of Goodman, Greg Goodman, said at the group's half-year results that he would be increasing the Japanese exposure. Last year, the company bought a development site in Osaka Bay with a completion value of $300 million.The project is expected to be the seed asset for the launch of the wholesale development partnership in Japan. Analysts said the new Japanese fund would be earnings positive for the group.As part of its rebranding initiative in Asia, Goodman will redevelop a 60,000-square-metre land bank into a 130,000-square-metre multi-tenant logistics and distribution centre.The opening of Interlink property comes as general divestment activity across the rest of the real estate investment trusts sector continues at a hectic pace. It is expected real estate investment trusts will be net sellers of assets in the coming year, with private superannuation funds and sovereign wealth funds the main buyers.Although last month was dominated by the reporting season, the "for sale" list of assets has crept up to be worth $9.3 billion - up from $8.9 billion in January but down from $10.4 billion in December.According to JP Morgan, the list continues to be dominated by a small group of assets and portfolios, including GPT Group and Queensland Investment Corporations' MLC Centre in Sydney ($750 million), Beville Group's Top Ryde shopping centre ($650 million) in Sydney, a Woolworths shopping centre portfolio ($610 million) and Raine Square, Perth, ($500 million).Additions to the list include BlackRock's Australian portfolio ($468 million) and Investa's 231 Elizabeth Street, Sydney, ($200 million).