Goodman Group announced the signing of an agreement with discount supermarket chain, LIDL for the development of a 39,392 m² logistics facility at Chanteloup-les-Vignes in the Western Paris region. The development of the new distribution centre will be pre-sold to LIDL France on a forward funding basis for a total consideration of 28 million.
Danny Peeters, Goodman's Chief Executive Officer for Continental Europe said, "We are very pleased to be undertaking this important development for LIDL France, which continues to demonstrate Goodman's proven ability to secure attractive deals with high quality customers."
The pre-funded and pre-sold nature of this development is consistent with Goodman's prudent development approach and focus on innovative and flexible sources of capital that significantly reduce the reliance on its own balance sheet.
The new distribution centre will complement LIDL's two existing logistics centers located near Paris and consists of 37,065 m² of logistics warehouse space, with an additional 2,327 m² of office space.
This transaction highlights the extensive work undertaken by Goodman's French team with land owners, local authorities, customers and contractors to package and deliver a turnkey solution to Europe's largest discount retailer.
"We continue to see strong demand for high quality logistics space in France and across our other European markets. This latest deal further expands our European development pipeline following the 45,000 m² of new projects announced this month across Germany, Hungary and the Netherlands," Mr Peeters added.
The LIDL development is expected to be completed by July 2011.