OPINION: Rising rates won’t dent the demand Goodman Group is seeing, but it could put overleveraged rivals into trouble, Greg Goodman says.
For Greg Goodman, founder of industrial property giant Goodman Group, the prospect of rapidly rising interest rates is a chance to remind his team what will change and what won’t.outperform the ASX 200 by almost six times over the past five yearsConsumer expectations around e-commerce aren’t about to change, and the need for businesses to bring more of their supply chain onshore in a world of supply chain dislocation and geopolitical tension hasn’t shifted either.
“Everyone’s looking at their feasibilities, looking at costs, looking at capitalisation rates, looking at rents. Everyone’s factoring in more time. There’s no complacency.” That will ensure Goodman Group has the flexibility to adapt to changing market conditions, but it could also mean less competition if highly leveraged rivals find themselves under pressure.“It’s almost been that you can pay anything for anything, and if you lever it high enough, you’ll get a return out of it. I think that’s over,” Goodman says.
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