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Goodman completes over 940,000 sq ft of leasing transactions in Hong Kong in Q3 2010

Wednesday, 27 October 2010

Goodman Group (Goodman), the integrated property group which owns, develops and manages industrial space, today announced that it has completed 941,616 sq ft of leasing transactions in Hong Kong during the third quarter of 2010. 
Highlights include:
  • Approximately 50% of the total 941,616 sq ft of leasing transactions completed in the third quarter were renewals by existing customers
  • The most significant renewals came from two Japanese office supply manufacturers, which renewed 116,459 sq ft and 82,110 sq ft respectively
  • 15 new customers, predominantly multinational operators, were added to the portfolio, taking up 275,893 sq ft of space
  • New leases accounted for approximately 481,101 sq ft, with 43% attributable to existing customers expanding their operations
HK$65 million of net rental income per annum will be contributed from the total 941,616 sq ft of new leases and renewals completed in the third quarter. Goodman continued to grow its Hong Kong portfolio during the period, adding a further 15 new customers and increasing the overall number of customers in its portfolio to over 200.

Mr Philip Pearce, Goodman’s Managing Director, Greater China said, "The Hong Kong economy continued to improve during the third quarter and this has translated into a steady inflow of new customers. We have seen a trend of multinational operators, mainly 3PLs (third-party logistics providers), committing to new space in line with the renewed confidence and positive outlook for the industrial property market."

Reflecting Goodman’s third quarter leasing success, customer retention stands at 76% with portfolio occupancy of 95%. This underlines the strength of Goodman’s existing customer relationships and flexibility in meeting their property needs through the active repositioning and upgrading of the portfolio’s assets. During the third quarter, two Japanese office supply manufacturers renewed 116,459 sq ft at Dynamic Cargo Centre, Tsuen Wan and 82,110 sq ft at Mita Centre, Kwai Chung respectively.

Mr Pearce continued,  “It  is a testament to our strong customer service offering to see a significant number of existing customers expand their operations and increase their space within our portfolio. The economic recovery has resulted in the Hong Kong leasing market performing exceptionally well in the third quarter, with warehouse space improving by a further 6.8% quarter-to-quarter, based on industry estimates. Being the largest landlord of industrial space in Hong Kong, Goodman is well-positioned to capture the pent-up market demand, particularly with the completion of Interlink, our landmark warehouse and distribution centre development in 

“We have experienced an upward trend in leasing activity for four consecutive quarters, with market rents rebounding by 17% over the past 12 months. By leveraging the Group's market leadership and expertise, we expect to continue benefiting from the increase in rents, which will in turn drive revenue growth,” Mr Pearce commented.

- Ends - 

For further information, please contact:

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

Financial Dynamics
Elaine Chan                                                          
Senior Vice President                                            
Tel +852 3716 9878 / 9633 5463                          

Helen Leung
Senior Consultant
Tel +852 3716 9815 / 9627 7524

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