You are accessing the Global Goodman site. Are you looking for your local Goodman site?

Goodman continues to expand in China, securing 103,000 sqm pre-commitment to a leading Chinese e-retailer in Tianjin

Wednesday, 14 November 2012

Goodman Group (Goodman or Group), the integrated property group which owns, develops and manages industrial space, today announces that it has achieved 260,000 sqm of new development commencements in mainland China during the third quarter, including a 103,000 sqm pre-lease to a leading e-retailer. Goodman’s Hong Kong portfolio also performed well, maintaining occupancy at 98% following strong leasing results for the quarter.

The operational highlights for the third quarter include: 


  • A total of 170,000 sqm of leasing transactions were concluded in the quarter, of which 97% were new leases
  • 120,000 sqm of new developments were completed in the quarter, with 89% occupancy on completion
  • Customer enquiry remains robust with occupancy across the entire portfolio at 97%
  • Portfolio grew to 650,000 sqm, and will further increase to in excess of 1 million sqm on completion of the current development work in progress
  • 260,000 sqm of development commencements with 40% pre-committed, including a new 103,000 sqm pre-commitment to a major e-retailer;
  • Work in progress is currently at 480,000 sqm across seven projects
  • Land bank and land reserve is currently more than 4 million sqm with a built out area of 2.7 million sqm

Hong Kong portfolio

  • A total of 1,078,488 sq ft of leasing transactions were concluded in the quarter, including new leases and renewals

  • Goodman Interlink reached full occupancy with NEC Logistics taking up the remaining 27,890 sq ft
  • CEVA Logistics and Global Solutions have committed to 83,818 sq ft and 58,793 sq ft respectively at Goodman Global Gateway, taking up the space vacated by DHL, which relocated to Goodman Interlink
  • Renewals accounted for 63% of total transactions in the third quarter

Mainland China

Goodman is continuing to expand its footprint in mainland China and with robust customer demand during the quarter, the Group completed 120,000 sqm of new developments, achieving 89% occupancy by completion.

The Group also commenced 260,000 sqm of new developments during the quarter. These newly commenced projects are 40% pre-committed, of which 103,000 sqm is a build-to-suit pre- commitment in Wuqing, Tianjin to a major e-retailer. The development is in close proximity to the previously announced 42,410 sqm pre-lease in Wuqing to major Chinese e-retailer, Moonbasa. The latest pre-leased facility will be developed in two phases, of which the first phase of 55,028 sqm has recently commenced with completion expected in August 2013.

The Group currently has 480,000 sqm of developments in progress, across seven projects and over 650,000 sqm of stabilised properties in China. Occupancy across the portfolio stands at 97% including recently completed developments.

Mr Philip Pearce, Goodman’s Managing Director, Greater China, said, “We are extremely pleased with the strong leasing success of our new developments. The signing of a second build-to-suit facility for an e-retailing customer demonstrates the strength of demand from the e- retailing sector and is testament to our reputation as a provider of high quality, flexible warehousing solutions.

“We continue to be confident of China’s economic outlook as strong domestic consumption prevails, which is in turn a key driver of demand for prime logistics and warehouse space.”

Goodman has a target development of 800,000 sqm over the next 12 months and a land bank/reserve in excess of 4 million sqm, which has the capacity to deliver 2.7 million sqm of prime logistics space over the next three years.

Hong Kong

“We are delighted to have welcomed a number of new customers to our Hong Kong portfolio this quarter. Demand for prime industrial space remains robust, underpinned by strong market fundamentals and the persistent undersupply of new prime space,” Mr Pearce said.

He added, “What is even more encouraging is that our existing customers are not only renewing their leases, but are committing to more space as their businesses expand. We are looking for opportunities to add to our portfolio in Hong Kong, with the outlook for the industrial property market continuing to be positive.”

Goodman is the largest industrial property landlord in Hong Kong, with 14 stabilised properties. Occupancy stood at 98% as at the end of September 2012, with only 1.2%, or 115,547 sq ft of portfolio space available for lease.

- Ends -

 

For further information, please contact:

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

Citigate Dewe Rogerson
Jasmine Yap
Co-Managing Director
Tel +852 3103 0108


About Goodman

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