You are accessing the Global Goodman site. Are you looking for your local Goodman site?
This is content entry and needs to be updated to CN
Would you like to be redirected to the English site?

Goodman sells Seaview land site in Hong Kong for HK$875 million

Monday, 27 September 2010

Goodman Group (Goodman or Group) and Goodman Hong Kong Logistics Partnership (GHKLP) today announce that they have entered into an unconditional Sale and Purchase Agreement with Billion Developments & Project Management Limited (Billion) for the sale of the 91,201 sq ft (8,473 sqm) Seaview site in Tsuen Wan, Hong Kong for HK$875 million.

Goodman Managing Director, Greater China, Phil Pearce said: "This transaction has enabled Goodman and GHKLP to take advantage of the strong market conditions in Hong Kong to sell non-income producing land at an attractive price."

Seaview is jointly owned on a 50/50 basis by Goodman and GHKLP. On completion of the sale, the proceeds will be returned to Goodman and GHKLP on a 50/50 basis.

Billion has acquired Seaview with the intention of developing the site for alternative use, which will not compete with GHKLP’s existing Hong Kong portfolio of 16 prime logistics properties.

“We were not immediately ready to proceed with the redevelopment of Seaview, and this sale highlights our active management approach and provides us with an excellent opportunity to redeploy capital across our Greater China business.”

“Goodman will seek to redeploy its share of the sale proceeds to take advantage of upcoming opportunities in mainland China consistent with the Group’s strategy of growing our presence and long-term commitment to the China market. Separately, the sale further strengthens GHKLP’s capital position following recent capital management activities and provides a strong platform to build on its position as the leading provider of logistics space in the Hong Kong market” Mr Pearce added.

The capital management initiatives undertaken by GHKLP over the past 12 months include:

  • The sale of two properties at above book value for a combined HK$540 million;
  • The refinancing of HK$2.7 billion of debt facilities which includes a new seven-year facility of HK$1.1 billion entered into with four international banks. This has extended the weighted average debt expiry from 2.2 years to 4.5 years, with no expiry until late 2013
  • Obtaining a construction facility of HK$1.2 billion (GHKLP’s share is HK$0.6 billion) for the Interlink development
As a result, GHKLP’s balance sheet and liquidity position have been significantly strengthened, with debt liquidity of HK$1.3 billion, additional equity capital on call of HK$800m and gearing reducing to 27%.

GHKLP’s and Goodman’s commitment to the Hong Kong market is evident through the Interlink development which commenced in late 2009 on a 50/50 joint venture basis between GHKLP and Goodman. On completion in early 2012, the project will provide 2.4 million sq ft (220,000 sqm) of premium logistics space adjacent to Hong Kong’s main container port with an end value in excess of HK$4.2 billion (100% basis).

"This transaction further demonstrates Goodman’s active approach in managing its Hong Kong portfolio and ability to take advantage of opportunities as they arise. It places GHKLP in a strong position to capture future value enhancing opportunities for its investors and customers,"  Mr Pearce concluded.

- End -

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

About Goodman

For more information, please go to


About Goodman Hong Kong Logistics Partnership (GHKLP)

For more information, please go to