Goodman Group (Goodman), an integrated property group that owns, develops and manages industrial space, today announced that it has achieved strong leasing results in the first quarter of 2011, completing approximately 2 million sq ft of leasing transactions in Hong Kong.
- Significant increase in portfolio occupancy to 98%
- Renewals by existing customers for over 66% of the total space leased
- 17 new customers were added to the portfolio, leasing a total of 428,439 sq ft
- New leases accounted for 667,207 sq ft, with 36% attributable to business expansion by existing customers
The successful quarterly leasing result has provided a significant uplift in the portfolio occupancy over the quarter from 96% to 98%, and has also secured annual rental income of over HK$137 million.
Over 1.4 million sq ft (or over 68%) of the leasing transactions were renewals by existing customers, underlining the strength of Goodman's existing customer relationships and flexibility in meeting their individual property requirements through the active repositioning and upgrading of the portfolio's assets.
Mr Philip Pearce, Goodman's Managing Director, Greater China said, "We are very pleased with the significant leasing activity across our Hong Kong portfolio
during the quarter and the quality of transactions that have been completed. Notably, the strong consumer demand and increasing tourist numbers from the Mainland, has seen an increase in the number of retail related customers and third party logistics providers taking up space in our portfolio"
Among the new customers welcomed into the Goodman Hong Kong portfolio
during the first quarter were:
- Chanel, a retailer of luxury products which has committed to 63,300 sq ft of space at Texaco Centre in Tsuen Wan
- Dah Chong Hong, a major international trading group, has signed a lease for 17,400 sq ft at Dynamic Cargo Centre in Tsuen Wan
- Sinomart, a leading local logistics operator (part of the Sinotrans Group), has committed to 79,400 sq ft at Western Plaza in Tuen Mun
- The buoyant domestic market has also driven strong demand for more space by existing customers seeking to expand their operations. This has resulted in eight existing customers leasing additional space of approximately 240,000 sq ft during the quarter.
Mr Pearce concluded, “The vibrant economy has resulted in greater demand for high quality, well located logistics facilities while supply of new and versatile industrial space is expected to remain limited. This has underpinned the strong leasing activity, with rents increasing by a further 2.5% during the quarter. The market is expecting economic growth to remain robust in 2011 which could further boost the demand for industrial space. Goodman is well positioned to capitalise on this trend and continue delivering exceptional performance.”
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For further information, please contact:
Marketing Director, Asia
Tel + 852 2249 3149 / 6111 9452