Trusts have out performed the market GMG appears to be a leader in the group was wondering why? It appears that the company is into eCommerce
Here is what they say in AFR... "The Goodman Group is not the typical REIT. The growth is in development and funds management.
If Goodman keeps rolling out new logistics facilities and backs them with third-party capital, earnings will grow (he is not the only one. The leader in global logistics property, Prologis, recently signed a €2.4?billion [$3?billion] joint venture with Norges Bank for a big Europe portfolio).
At the moment the demand is holding, helped by e-commerce and Goodman’s ability to look after his big tenants.
He points to the potential growth in China which at the moment has 150 million online shoppers spending $200?-$250 a year compared with 170 million in the US spending $1000 a year.
To underline the point, Goodman has just signed online fashion and accessory retailer Moonbasa.com to a new project in Tianjin.
Third-party capital is following. The Canadian CPPIB contributed another $US800 million to the Chinese business this year.
The model is working. Distributions rose 3 per cent in 2012 and will rise again in 2013."
Does anyone know how this works? Obviously a eCommerce business needs a warehouse to store stuff that they sell. Is Goodman getting into supplying these warehouses?
thanx
GMG Price at posting:
$4.30 Sentiment: None Disclosure: Not Held
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