Australian industrial property developer Goodman Group wants to enter the Brazilian market to tap strong demand for high-quality warehouses, and will likely make an announcement on such a move later this year, a company executive said on Friday.
Goodman Group Chief Executive Greg Goodman said there was a lack of supply in high-quality warehousing while funding was restrained in Brazil, presenting opportunities for those with capital and expertise.
"We are looking at the market and we are looking at transactions," Goodman told a press briefing.
"We want to be in that market. I suspect during this calendar year, we'll be able to say more about that, probably later in the year," he added.
Brazilian publication Valor Economico reported earlier this month that Goodman would form a joint venture with WTorre to invest in Brazil.
Goodman announced on Thursday a plan to expand into the U.S. logistic market by launching an $890 million venture with Canadian pension fund manager CPPIB. The venture will make targeted investments in U.S. logistics hubs such as Los Angeles, San Francisco and Seattle on the West Coast, and New York, New Jersey and Philadelphia on the Eastern Seaboard.
Goodman, a Sydney-based developer backed by sovereign wealth fund China Investment Corp, has already established a strong presence in Asia and Europe. It generates 41 percent of operating EBIT (earnings before interest and taxes) from outside its home country.
Rapid growth in online shopping and demand for greater supply-chain efficiencies are helping to drive demand for high-quality warehouses around the globe, Goodman said.
For the year to June, Goodman reported a 21 percent increase in operating profit to A$463 million and projected a further 13 percent rise to A$524 million in the current fiscal year.
Goodman's total assets under management expanded 11 percent to A$20 billion in the year to June, and Goodman said its assets are again expected to grow more than 10 percent this year.
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