Goodman Qingpu Centre, Landmark Industrial and Business Facility in Shanghai, Officially Opened by the Minister for Trade and Investment of Australia

Goodman Qingpu Centre achieved 97% occupancy by completion, reflecting the strong competitive advantage Goodman derives from the development of premium quality, modern industrial space in strategic locations. Goodman's global platform spans 16 countries in Asia Pacific, Europe and the Americas, with total assets under management of A$33.4 billion across 432 properties.

Mr Greg Goodman, Goodman Group Chief Executive Officer, said, "Goodman's strategy is to drive sustainable long-term growth and selectively pursue opportunities in key cities around the world, including Shanghai. Our focus on delivering the highest standards of customer service and ability to provide a consistently high quality product and service offering is demonstrated in our high occupancy and customer retention levels and strong leasing demand."

In Greater China, Goodman is one of the largest providers of industrial space with total assets under management of US$5.5 billion (A$7.5 billion) across 41 properties. In addition, it has a development work book of 800,000 sqm covering 17 projects. An increasing number of our developments are pre-leased, indicating the maturity of the market as more companies incorporate their future property space needs into their overall business planning. Goodman has received encouraging demand with over 60% of these projects pre-committed, with a high level of enquiry on the balance of the space, from both local and international customers.

In December 2015, Goodman and Canada Pension Plan Investment Board increased their equity allocation to the Goodman China Logistics Partnership by US$1.25 billion, to take advantage of the current operating conditions and undersupply of prime industrial space in China. This is being delivered through Goodman's focus on strengthening its operating platform in key cities, predominantly in and around Shanghai and Beijing.

Goodman Qingpu Centre is the Group's first three-storey distribution facility in China and has already proven a success, with 97% of the prime distribution space at the newly completed development leased to the following customers:

• 63,130 sqm to JD.com, China's leading e-commerce company and an existing customer at Goodman Landport in Tianjin, Goodman Lujia Logistics Centre in Kunshan and Goodman Xindu North Industrial Park in Chengdu;
• 22,602 sqm to Shanghai Kuichun Industry (Kuichun), a nationwide distributor of imported food and beverage products; and
• 21,155 sqm to Kintetsu World Express (KWE), a leading Japanese distributor and supply chain company.

The Honorable Steven Ciobo MP, the Minister for Trade and Investment of Australia, said, "I am pleased to be here today to open the Goodman Qingpu Centre, a landmark development which showcases Goodman's innovation and success in China. It exemplifies the efforts of Australian companies in building closer relationships with China through trade, investment and business links."

He added, "It is important we build strong partnerships with China businesses and I am very pleased to see Australian businesses flourishing abroad. I hope the strong Australia-China trade and investment relationship will provide us with shared future prosperity."

Mr Philip Pearce, Goodman's Managing Director Greater China, said, "We are delighted to welcome the Honorable Steven Ciobo MP, the Minister for Trade and Investment of Australia, representatives of the Shanghai Municipal Commission of Commerce and other distinguished guests to mark this significant milestone in the development of our business in China. Goodman Qingpu Centre is one of our flagship developments in Eastern China, an area of growth for us, where we see increasing demand from e-commerce and fast-moving consumer goods distribution, which in turn is fueling demand for modern, high quality, prime industrial space."

Mr Liu Quan, National Logistics Manager of Pinlive Foods, a company established by the merger of Beijing Pinlive Food and Kuichun, said, "We are delighted to cooperate with Goodman to relocate our warehousing centre in Eastern China to Goodman Qingpu Centre. The convenient location and high quality logistics space provided will allow us to rapidly scale up our distribution capacity in this dynamic market."

Mr Fang Liu, Senior Deputy General Manager for Beijing Kintetsu World Express (BKWE), said, "The space and facility upgrades at Goodman Qingpu Centre are in line with BKWE's specific needs and have enabled us to meet the demands of our high-end customers. We look forward to working with Goodman over the next decade, with a view to extending our collaboration into other regions in China in the near future."

Strategically located in the Zhangjiang Qingpu Hi-Tech Park, a state-level development zone, Goodman Qingpu Centre has easy access to Shanghai and major cities in Jiangsu province, and is Goodman's first green industrial development in China. Goodman is in the process of applying for a two-star rating from the China Green Building Label and the USGBC LEED Gold certification for its development. Completed in December 2015, the project has an estimated end value of US$112.6 million (A$149.0 million).

In addition to Goodman Qingpu Centre, Goodman has seven other industrial investments in Shanghai, including Goodman Pudong International Airport Logistics Park, an award-winning development comprising three phases of two storey ramp-up warehouse facilities.

For further information, please contact:

Goodman

Citigate Dewe Rogerson

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.

Goodman's global property expertise, integrated own+develop+manage customer service offering and significant fund management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver sustainable long-term returns for its Partners. For more information please visit www.goodman.com

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