CHINA and Europe will drive future growth of global industrial...

CHINA and Europe will drive future growth of global industrial property developer and owner Goodman Group, according to analysts.
Goodman has forecast a net operating profit of $380 million this financial year, up from $310m last year.

In separate research notes published yesterday, analysts noted that Goodman's tie-up with China Investment Corporation, a sovereign wealth fund, played a crucial role in its expansion in China.

Macquarie Equities analyst Paul Checchin said the relationship would be pivotal in Goodman acquiring land for development in China.

Mr Checchin said Goodman and the Canadian Pension Plan Investment Corporation were in the process of increasing their target investment in their Chinese joint venture from $US350m ($332m) to $US500m which, along with debt, equated to $US1 billion.

JPMorgan property analyst Richard Jones said China remained the "great unknown" given Goodman had no track record outside Hong Kong and was aiming to lift its exposure.

Mr Jones said Goodman was clearly in recovery mode. The group had deep-pocketed capital partners funding its global expansion and a strongly growing development book.

Goodman has indicated a doubling of the European platform from E1.5bn ($2bn) to E3bn through development and acquisition.

Macquarie had an "outperform" recommendation on Goodman, while JPMorgan maintained a "neutral" call.