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Thinking big - really, really big

Goodman Group leaps into the Czech market with first office in Prague

By Curtis M. Wong
Staff Writer, The Prague Post
July 16th, 2008 issue

COURTESY PHOTO
Zsombor Török is in charge of the company's East European division.
Goodman Group


Pobřežní 3
Prague 8
E-mail: info-eu@goodman.com

When it comes to real estate, many firms take one of two routes when breaking into a new market. They either start small and build gradually, or they think big — make that very big — and secure a grand, long-term investment plan.
For Goodman Group, an Australian-based integrated property group that owns, develops and manages industrial business space around the world, the latter approach seems most viable. After entering the Czech market in 2007, the company announced its robust development plans for Prague and the rest of the country at a recent press conference. And officials say it’s only the company’s first step in establishing itself as an industrial development force throughout the rest of region.  
“The Czech Republic is the dominating market [in Central and Eastern Europe] because of the demand and the strong growth in the country’s economy,” says Zsombor Török, country manager for the company’s East European division. “We want to be a market leader here within the next five years. We want to provide the same level of services as we do in Australia, Asia and Western Europe, as well as introducing a new level of project standards not present in the current market.”
With the number of logistics and production facilities that have relocated to Central and Eastern Europe, there is a strong demand for the high-quality warehouse space that Goodman specializes in, Török adds.
While Goodman’s local office opened in 2007, their initial footing in the country began some time earlier, with their first Czech project — the 14,574-square-meter Modletice Logistic Centre in Prague, which wrapped in 2006. This was soon followed by the Jažlovice Logistics Centre, a 23,500-square-meter warehouse that was completed in March of this year.
Goodman officials say the Czech Republic is the company’s first step in breaking into other East European markets, due partly to the region’s central geographic location and reliable legal systems. The company would like to establish a branch office in Bucharest soon, and also hopes to enter the Bulgarian and Ukrainian markets as early as 2009. Locally, officials say they’ve begun looking into potential projects in regional cities such as Brno and Ostrava.
“We’re constantly looking at other opportunities, including acquisitions and joint ventures,” Török says. The company’s development plans are “assertive, but not aggressive and still careful,” he adds.     
While Goodman is now one of the largest property groups in the world, it was not an overnight international success. Founded in Australia in 1995 as Macquarie Goodman Industrial Trust, the company had to establish itself domestically before moving into foreign markets.
By 2005, however, the group had undergone a series of acquisitions, which began to expand its operations into new markets, including Asia and subsequently Europe, where the company now has offices in 12 countries including France, Spain, Germany and the Netherlands. And a lot has changed since the early days. Goodman is now the second-largest specialist fund manager of industrial and business park assets listed globally.
However, despite this unprecedented growth, officials say it’s quality, not quantity, that has remained the company’s first priority. Being dedicated to their clients, they say, is more than just a focus — it’s the company’s paramount philosophy.
“The Czech Republic is just the latest addition to our group of countries, and we intend to develop here just as we do elsewhere,” says Miroslav Nutil, the company’s senior business development manager for the Czech Republic and Slovakia. “We’ll be trying to create an optimum environment for our clients. We’re very flexible and prepared to cooperate. If our clients [feel their projects] are successful, then we are happy and successful as well.”  

Curtis M. Wong can be reached at specialsection@praguepost.com


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