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Goodman completes 1.5m sq ft of leasing transactions in Hong Kong in Q2 2010

Wednesday, 21 July 2010

Goodman Asia (Goodman), the integrated property group which owns, develops and manages industrial space, today announces that it has completed over 1.5 million sq ft of leasing transactions in Hong Kong during the second quarter of 2010. 
Highlights include:

  • Growth in warehouse demand continued in Q2 with over 1.5 million sq ft of space leased, equating to 15% quarter-on-quarter growth.
  • Renewals amounted to 72% or over 1 million sq ft of the total leasing transactions, with new leases representing over 409,000 sq ft.
  • Customer retention rate of 76% was maintained on lease renewals.
  • 11 new customers,  predominantly retailers and multinational logistics companies,  were added to the portfolio and committed approximately 164,000 sq ft of the new space leased.
  • Existing customers committed to 60% or over 245,000 sq ft of the new space leased to meet their expansion needs.
The 15% quarter-on-quarter leasing transaction growth achieved in the June quarter was reflected in both renewals and new leases of over 1 million sq ft and 409,000 sq ft respectively. The transactions secured HK$107.7 million of net rental income per annum and added 11 new customers to the portfolio.

Mr Philip Pearce, Goodman’s Managing Director, Greater China said, “Enquiries for our warehousing space maintained an upward trend in the June quarter as the recovery in Hong Kong’s retail sector continues to gather pace. We have seen significant growth in the number of retail-related customers taking up space in our portfolio since the last quarter of 2009, while many existing retailers are committing to additional warehouse space to cater for their expanding operations in Hong Kong and the region.”

Among the new customers gained during the June quarter, Goodman attracted Swatch Group, a worldwide renowned watchmaker, seeking to upgrade their facilities, who leased approximately 28,000 sq  ft at Cargo Consolidation Complex in Kwai Chung. Separately, A-Fontane, a household product retailer, expanded its local operation and leased approximately 21,000 sq ft at Texaco Centre in Tsuen Wan.

“We expect warehouse demand and rental growth to continue in line with the robust recovery in the retail sector, given that the supply of new and versatile industrial buildings is expected to remain limited. Goodman is the largest owner of warehouse and distribution properties in Hong Kong, including Interlink which will be completed in 2012, and this puts us in a strong position to capture the pent-up market demand.”

“We are also pleased that 60% of the new leases undertaken were to meet the growing business needs of our existing customers, mainly retailers and logistics providers. This is strong testament to the success of our active asset management approach and the quality management of our buildings,” Mr Pearce commented.

- Ends - 

For further information, please contact:

Besy Leung
Marketing Director, Asia
Tel + 852 2249 3149 / 6111 9452

Financial Dynamics
Elaine Chan                                                             Peony Sze
Senior Vice President                                               Associate Vice President
Tel +852 3716 9878 / 9633 5463                               Tel +852 3716 9821 / 9809 6285

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