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Goodman completes over 4m sq ft of leasing transactions in Hong Kong in 2010

Wednesday, 26 January 2011

Goodman Group (Goodman), the integrated property group which owns, develops and manages industrial space, today announced that it has completed 1,248,192 sq ft of leasing transactions in Hong Kong during the fourth quarter of 2010, bringing the total leasing transactions for the year ended 31 December 2010 to 4,120,231 sq ft.  

Highlights include:
  • Total leasing transactions surged strongly by 33% to 1,248,192 sq ft quarter- on-quarter
  • Portfolio occupancy climbed to 96.4% in Q4, the highest since June 2009
  • Renewals by existing customers accounted for over 60% of the total space leased in Q4
  • Eight new customers were added to the portfolio during the quarter
  • The strong Q4 performance boosted the 2010 full-year leasing transactions to over 4.12 million sq ft, representing over 50% of the total area in Goodman’s Hong Kong portfolio

The  significant  full-year leasing success was attributable to several existing  large  space occupiers including DHL (over 300,000 sq ft), Santa Fe (over 250,000 sq ft), JSI Logistics (over 90,000 sq ft) and Kyocera Mita (over 80,000 sq ft) agreeing to new terms to extend their leases beyond 2010. A number of other larger customers also renewed and extended their leases in advance to secure the future of their Hong Kong base in an increasingly competitive market for quality warehouse space.

The group’s portfolio occupancy continued to increase in the fourth quarter to reach 96.4%, the highest since June 2009, reflecting the strong market fundamentals and improving sentiment in the Hong Kong market. The leasing transactions in the fourth quarter alone contributed net rental income per annum of HK$96.3 million.

Mr Philip Pearce, Goodman’s Managing Director, Greater China said, “Goodman's portfolio continued to deliver strong and sustainable growth. The occupancy rate has steadily climbed throughout 2010, thanks to Hong Kong’s continued economic growth, strong external trade and improved cargo volumes which grew by 15.1% last October.  During the quarter we experienced considerable leasing activity across the whole portfolio.”

Eight new customers were added to the portfolio including Sumitomo Warehouse, leasing over 28,000 sq ft and 10,000 sq ft at Tuen Mun Distribution Centre, Tuen Mun and Texaco Centre, Tsuen Wan respectively; Kaga Devices committing to over 21,000 sq ft at Texaco Centre; and Him Kee Food Distribution moving into a 63,000 sq ft premises at East Asia Industrial Building, Tuen Mun.

Renewals accounted for over 60% of the total space leased during the quarter whilst expansion by existing customers represented 68% of all the new lettings, in line with the transactions that took place over the past 12 months.

“We are encouraged by the renewals from existing customers, which accounted for the majority of the completed leasing transactions in both the December quarter and the full year. This clearly  indicates  strong  business  momentum  driven  by  our  customers'  confidence  and satisfaction with Goodman's portfolio quality, exceptional customer service model and the expertise of our on-site building services team.”

Mr Pearce concluded, “The vibrant growth of external trade has resulted in greater demand for high quality, well located logistics facilities as businesses leverage Hong Kong’s strengthening domestic consumption and the city’s strategic location as a gateway for distribution and logistics services in Greater China. This has resulted in a more buoyant leasing market, with rents rebounding 19.0% over the past 12 months. The market is expecting external trade to remain robust in 2011 and that could further boost the demand for industrial space. Goodman is well- positioned to capitalise on this trend and continue delivering exceptional performance.”

- Ends -

For further information, please contact:

Goodman
Besy Leung
Marketing Director, Asia
Tel + 852 2249 3149

Financial Dynamics
Elaine Chan                                                            
Senior Vice President                                          
Tel +852 3716 9878


About Goodman

For more information, please go to www.goodman.com