Goodman Enters Air Cargo Logistics JV at Japan’s Narita Airport
Goodman Group will join with local partners in developing air cargo logistics infrastructure on a 70 hectare (172 acre) site at Narita International Airport, as the Aussie industrial specialist carries out a plan to expand its development workbook in Japan to more than A$10 billion ($6.7 billion).
The project aligns with the planned completion of the Tokyo-serving airport’s third runway in 2029, with Goodman chosen due to its extensive experience in developing large and complex projects in Japan, the Sydney-based builder said in a release.
Goodman’s existing projects in the country include Goodman Business Park Chiba, which is nearing completion, as well as the under-construction Goodman Joso project and a future master-planned estate in Tsukuba City.
“Our workbook in Japan clearly demonstrates Goodman’s global focus to develop essential infrastructure that is high-quality, sustainable, and integrated into the local community for the long term,” said Goodman CEO Greg Goodman.
The Australian firm will partner with Tako town, the Narita International Airport Corporation and the Chiba prefectural government on a project to streamline cargo operations in and out of Narita, which ranks as one of the world’s 10 busiest airports for cargo traffic.
The nearby Goodman Business Park, an industrial and data centre hub, spans 50 hectares of land and 900,000 square metres (9.7 million square feet) of gross floor area over seven stages. Since the completion of its 116,000 square metre first phase in 2016, the $2.7 billion project has attracted global clients including Google, BMW and Skechers.
Goodman Joso, meanwhile, is an industrial project under construction over two buildings next to the Joso Interchange about an hour’s drive from central Tokyo. When it acquired the site in 2021, Goodman said the project would provide opportunities for retail, e-commerce and third-party logistics customers in a location with access to 15 million Greater Tokyo consumers.
Goodman Tsukuba, a master-planned industrial and data centre project in Greater Tokyo’s Ibaraki prefecture, covers 45 hectares of land acquired from a local government corporation last year. Plans call for construction of logistics facilities, data centres and community amenities at the site.
Greg Goodman told the Australian Business Review last week that his company remained committed to building next to major infrastructure sites around the world even in the face of the slowing economy.
Investment Sweet Spot
A JLL survey of global real estate investors found that 68 percent expected to increase Japan exposure this year.
Among regional cities, Tokyo scored a trifecta as respondents named the capital’s multifamily, industrial and office sectors as the top three investment markets in which they intended to spend more in 2023, according to the property consultancy’s Asia Pacific Investor Sentiment Barometer.
Logistics was identified by investors as the asset class likely to see the largest net increase in capital and loan exposure regionwide this year, with 64 percent of respondents planning to increase their investment in a sector underpinned by robust occupier demand and rental growth, JLL said.