Logistics News

Australand joins Asian property giant on logistics expansion

Construction firm Australand has entered into a joint venture with CapitaLand to invest in, develop and manage industrial and logistics

Construction firm Australand has entered into a joint venture with CapitaLand to invest in, develop and manage industrial and logistics properties in Asia.

The new entity will enter one of the fastest growing logistics market in the world and plans to expand into the high growth Asian markets with initial focus on China.

The joint venture will identify suitable development sites for projects, in which CapitaLand will own a 51 percent stake and Australand the remaining 49 percent.

CapitaLand is one of the largest property companies in Asia with a market capitalisation of S$17.1 billion and is Australand’s 54 percent majority shareholder.

The joint venture integrates the strong capabilities of both companies, according to Australand Chief Executive Bob Johnston.

He says Australand has a track record and expertise in designing, developing and managing industrial and logistics properties in Australia while CapitaLand has a vast network, human and financial resources, as well as a significant development footprint in Asia.

“This is a very exciting initiative for Australand as it allows us to export our strong industrial and logistics skill sets overseas and integrate it with CapitaLand’s vast development expertise and presence in Asia,” he says.

“We are already one of the largest industrial property developers in Australia, having developed over one million square metres of industrial and business park space over the past three years and have a forecast of 424,000 square metres in progress in 2008.

“The opportunities in Asia are extensive and we expect the joint venture to identify projects that will leverage on our knowledge and reputation in this sector.”

Liew Mun Leong, President and CEO of CapitaLand says, the new venture will provide CapitaLand with a Pan-Asian development platform in the industrial and logistics sectors in Asia.

“Australand has an impressive track record as a leading industrial property developer in Australia. With CapitaLand’s on-ground presence, established delivery platform and local network in key Asian gateway cities, we intend to capitalise on the high growth in the industrial and logistics sector in Asia to become a leading industrial and logistics property player,” he says.

Australand’s interest in the joint venture is headed by Peter Wilding, who has recently relocated to Singapore and was previously Australand’s New South Wales General Manager, Commercial and Industrial.

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