Goodman Asia (Goodman), the integrated property group which owns, develops and manages industrial space, today announces that it leased a record 1,148,000 sq ft of property space in Hong Kong in the fourth quarter of 2009, bringing the total to 1,986,000 sq ft for the year ended 31 December 2009.
The leasing transactions for the fourth quarter of 2009 represented an 85% increase from the previous quarter of 620,000 sq ft and underlined the increasing demand for industrial space in Hong Kong during the second half of the year.
- Leasing and renewals represent over 14% of the gross lettable area within Goodman portfolio - a record number since Goodman established operations in Hong Kong
- New leases accounted for approximately 400,000 sq ft which was a combination of new customers coming into the portfolio and existing customers expanding their operations
- Existing customers renewed approximately 750,000 sq ft with a number of leases secured well in advance indicating a growing confidence in the Hong Kong warehouse market
- An increase in transactions and demand in the prime port locations. This will enable the Interlink development in Tsing Yi, which commenced construction in December, to take advantage of the stronger demand in the upper end of the warehouse market
The leasing transactions in the December quarter accounted for nearly 60% of all leases signed in 2009, representing over 14% of the portfolio. The transactions secured HK$68.9 million of net rental income per annum for the portfolio which provides further stability and income growth.
Mr Philip Pearce, Goodman’s Managing Director, Greater China said, “The strong performance overall, and in particular the December quarter, indicates a renewed confidence and positive outlook for the industrial property market, which bodes well for the Interlink
project. Demand will strengthen for warehousing in the port area locations such as Tsing Yi, Tsuen Wan and Kwai Chung as the economy improves.
“Renewals with existing customers accounted for the majority of the completed leasing transactions in the December quarter, demonstrating the ability to implement our customer service model by retaining customers in very challenging times through Goodman’s proven approach to active asset management.”
Among the leasing transactions concluded in the fourth quarter of 2009, 65% were renewals and 35% were new leases. The major new lease concluded was with a leading FMCG enterprise which leased the entire 207,863 sq ft Kader Industrial Building in Fanling. An existing customer also renewed its lease for the entire Wilson Logistics Centre in Kwai Chung which has an area of 281,614 sq ft.
Amid the relatively tight supply of industrial properties located in the port areas and Hong Kong’s economic recovery, Goodman has commenced construction of Interlink, its landmark warehouse and distribution development in Tsing Yi. When completed in January 2012, the development, with a total cost of HK$3,010 million (A$430 million)1, will add 2.4 million sq ft (222,000 sqm) of industrial space to the market.
“Our strong leasing result for the fourth quarter indicates that demand for warehousing space will be sustained by the recovery in global trade. We are confident that Interlink
will be able to take advantage of the uptrend when it is completed,” Mr Pearce concluded.
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For further information, please contact:
Marketing Director, Asia
Tel + 852 2249 3149 / 6111 9452
Elaine Chan Peony Sze
Senior Vice President Associate Vice President
Tel +852 3716 9878 Tel +852 3716 9821
1 Total project cost, including development and land acquisition costs incurred to date.
For more information, please go to https://www.goodman.com/hk