** Shares of Australia's Goodman Group GMG.AX rise 1.1% to A$30.87

** Analysts at Morningstar recommend investors to not participate in the developer's share purchase plan

** Goodman, after completing an A$4 bln ($2.52 bln) placement, is raising A$400 mln via a share purchase plan

** Brokerage feels GMG shares are overvalued and questions the maintainability of excessive returns in data centre investments in the long run

** Competition in the data center space is intensifying, as many rival REITs and data center operators are rapidly adding new supply, and suitable locations will be harder to obtain, says Morningstar

** Stock down 13.9% YTD

($1 = 1.5873 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))