The Goodman Group, a global industrial property firm which was formerly known as Macquarie Goodman, announced yesterday it will set up a US$132 million venture with a Canadian partner as it embarks to expand its presence in .

The venture, jointly set up with the Canada Pension Plan Investment Board, will invest more than US$150 million to develop logistics facilities on land currently owned by Goodman on the Chinese mainland.

"By joining forces with CPPIB, Goodman will be better positioned to take advantage of the opportunities in 's fast-growing logistics market," said Philip Pearce, managing director of Goodman . "We believe has the potential to become one of the world's largest logistics markets."

Four of Goodman's income-producing assets in Shanghai - Kangqiao Distribution Center , Fengxian Distribution Center , Fengxian International Logistics Park and Taopu Industrial Estate - will be initially seeded in the venture.

The four facilities offer a combined area of more than 270,000 square meters for lease, with an overall occupancy rate of 99 percent, and serve clients such as DHL, Lotus Supermarket, NYK Logistics and Sinotrans.

The venture also has a 12-month option to acquire Goodman's land bank plus the right of first refusal over all logistics opportunities sourced by Goodman on the Chinese mainland for as long as it continues to invest.

Entering the Chinese mainland market in 2005, Sydney-based Goodman has an existing land bank of more than 300,000 square meters across the country, which it hopes will be developed by the joint venture over the next three years.

CPPIB invests assets of the Canada Pension Plan and manages assets totaling C$105.5 billion (US$97.9 billion).

In Shanghai , which is Goodman's main market, demand for non-bonded logistics and warehousing space has been rising amid a need for domestic distribution from retailers and manufacturers, said two leading real estate services firms.

Source: ShanghaiDaily.com