Industrial landlord Goodman Group has expanded its footprint in Asia after the completion of the 116,000-square-metre stage one of the Goodman Business Park in Chiba New Town in the Greater Tokyo area.
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Stage two development is under way.
The large-scale, master-planned logistics and business park is in a strategic location with transport connectivity in a growing residential and business area.
Goodman chief executive Greg Goodman said the strong customer demand for the business park reflected the benchmark set by the project in delivering a high-specification, modern logistics space with a high level of employee amenity.
"We are excited to now be commencing stage two, of what will be a $US1.5 billion ($2 billion) logistics and business park on completion," Mr Goodman said.
The group also recently secured 100 per cent of its operating platform in Brazil.
Goodman and WTorre have agreed on commercial terms to split their respective interests in the assets of their WTGoodman Brazilian joint venture.
Mr Goodman said Goodman Brazil would operate under the global brand and be strategically aligned with the group's platform covering 16 countries.
The deal comes as the demand for large-scale industrial warehouses reaches an unprecedented level, particularly in Asia with its high online shopping demand.
Storage and distribution hubs are the hot ticket in property.
Close to $1 billion worth of industrial assets are on the market in Australia, mainly through a few portfolios owned by Charter Hall, GPT Group and Altus, among others, and agents say demand is strong.
JLL's NSW managing director and Australian head of industrial, Michael Fenton, said investment market momentum continued into the first quarter of this year after a record 2015 for industrial sector transaction volumes.
"Investors are attracted to the industrial sector by the higher yield relative to retail and office, while the improvement in take-up over 2015 is [a] precursor to rental growth in a number of precincts in Sydney and Melbourne over 2016 and 2017," Mr Fenton said.
LJ Hooker Commercial's Industrial Market Monitor says Sydney's industrial property values will continue to grow despite a record level of new supply over the next two years.
The report says prime industrial property values will withstand the largest post-global financial crisis supply program, to rise by 10 per cent to mid-2018, but the growth will not match the strong performances of 2015 (9 per cent) and 2014 (6 per cent).
The head of LJ Hooker Commercial, Christopher Mourd,, said growing tenant demand for warehouse and distribution facilities to accommodate the booming transport and logistics sector meant investors would seek newly built pre-committed assets.
"Investment demand has driven yields tighter, helping [to] improve the financial feasibility of industrial construction by increasing the end value of projects," Mr Mourd said.
