Australia-based developer Goodman Group scored a win in the competition among China’s logistics developers to win over big name occupiers when it signed up IKEA to an 11,000 square metre lease in Chengdu.
The agreement with the Swedish home furnishings giant is for space in the recently completed phase one of Goodman’s Longquan Logistics Centre in the Chengdu National Economic and Technological Zone. The Longquan centre is the company’s first project in the capital of Sichuan province.
IKEA currently has 16 stores across 13 cities in China and said in a statement that it needs the new space to supply its expanding retail network. The two companies have an existing relationship from IKEA’s operations in Australia, and have now expanded that partnership into China.
“Goodman has built a successful relationship with IKEA in Australia over a number of years. We are very pleased to extend our partnership with IKEA into China and look forward to working closely with them as they continue to grow their business across China,” said Philip Pearce, Managing Director Greater China for Goodman in a company statement.
Goodman’s Chengdu project is to be developed in two phases, and when completed in 2015 will comprise a total of five warehouses. The three single-storey buildings, along with two double-storey ramped warehouses will provide a total of approximately 97,000 sqm of prime logistics space.
The Longquan centre is said to have an estimated end value of more than US$62 million.
Phase one of the project, where IKEA will be leasing space, comprises 55,000 sqm of gross floor area across three warehouses. According to Goodman’s statement, in addition to IKEA it has also signed leases with Best Way Logistics and MaiMaiBao for space in this first phase of the project.
Goodman Expanding in Western China
The Chengdu project is not the only development for Goodman in western China, as the company earlier this year announced plans for a 22,000 sqm built-to-suit facility for Best Logistics Technology (Hangzhou) Co. Ltd in Chongqing, China. The Chongqing facility will be located in the Goodman’s Chongqing Airport Logistics Park, which is also the company’s first project in that city.