Goodman Group has signed an agreement with discount supermarket...

Goodman Group has signed an agreement with discount supermarket chain LIDL for the development of a logistics facility in France.

The 39,392 square metre distribution centre at Chanteloup-les-Vignes in the Western Paris region will be pre-sold to LIDL France on a forward funding basis for euro 28 million.

"The pre-funded and pre-sold nature of this development is consistent with Goodman's prudent development approach and focus on innovative and flexible sources of capital that significantly reduce the reliance on its own balance sheet," says Goodman's chief executive for Continental Europe, Danny Peeters.

The centre will complement LIDL's two existing logistics centres located near Paris and consists of 37,065sq/m of logistics warehouse space, with an additional 2,327sq/m of office space.

Peeters says the deal highlights the work undertaken by Goodman's French team with land owners, local authorities, customers and contractors to package and deliver a turnkey solution to Europe's largest discount retailer.

"We continue to see strong demand for high quality logistics space in France and across our other European markets," says Peeters.

"This latest deal further expands our European development pipeline following the 45,000sq/m of new projects announced this month across Germany, Hungary and the Netherlands."

The development is expected to be completed by July 2011.

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