Australian industrial developer Goodman Group has appointed Paul McGarry as head of its Asia operations, as the company restructures its management following the departure of long-time Greater China head Philip Pearce last month.
In the newly-created top role for Asia, McGarry – who formerly managed the company’s Japan business – now has overall responsibility for Goodman’s development projects, asset management and investment management as the Sydney-based warehouse builder continues to expand in the region. The change in management structure and in McGarry’s role was announced by company CEO Greg Goodman in a statement to the Australian stock exchange last week.
Goodman Rolls Out New Asia Management
While Goodman did not explain the rationale for the change in management structure, the new organisation chart debuts at a time when Goodman is rapidly expanding its footprint in Asia, and follows soon after Pearce’s departure early last month.
After more than fourteen years at the company, Pearce resigned from both his role as Greater China Managing Director and Goodman board member early last month reportedly due to health reasons. Kristoffer Harvey, who formerly served as director of funds management for Goodman in Greater China was promoted to Pearce’s former position during July.
In Japan, Goodman has promoted its former Japan COO Angus Brooks to fill McGarry’s former position as chief executive for Japan.
Asia Logistics Market Heats Up
With investors increasingly drawn to logistics opportunities due to steady yields and growing demand from ecommerce users, McGarry and his crew are steering a growing business albeit in a sector that is attracting more players as it draws in more cash.
Goodman, which already has more than 3.2 million square metres of distribution facilities across China and Hong Kong, announced earlier this year that it has the capacity available to build up to 2 million more square metres in China – effectively expanding its mainland business by more than 60 percent.
The Australian developer has teamed up with CPPIB to fund its expansion in China and announced a new $1.25 billion partnership with the Canadian pension fund manager in December last year.
While Goodman, which is widely estimated to be the second-largest warehouse developer in China after market leader GLP, has a solid foundation in the market, new players have been mounting challenges to the Aussie logistics specialist.
In addition to its deals with Goodman, CPPIB has invested in competitor e-Shang Redwood’s Korean operation, and Carlyle-backed warehouse developer China Logistics Property raised around $460 million through its Hong Kong IPO last month.