Goodman Group (Goodman), a leading integrated property group that owns, develops and manages industrial space, today announced that its Hong Kong property portfolio has achieved strong leasing results in the second quarter of 2011, resulting in overall occupancy increasing from 94% to 99%, representing a significant uplift of 5% over the year.
- 1.1 million sq ft successfully leased over the quarter
- Renewals by existing customers accounted for approximately 53% of the total space leased
- Nine new customers were added to the portfolio, with 73% of the newly leased space taken up by luxury goods retailers
During the quarter, a total of over 1.1 million sq ft of leasing transactions were completed, generating annual rental income of over HK$74.5 million.
Existing customers renewed leases for over 589,000 sq ft which was approximately 53% of the total leasing transactions for the June quarter. Limited supply of quality space in the market and Goodman's successful customer service model also resulted in the existing customers committing to 270,000 sq ft (or approximately 24% of the total leasing transactions) during the quarter to cater for expansion of their Hong Kong operations.
This result underlines the strength of Goodman's existing customer relationships and flexibility in meeting their individual property requirements, through the active repositioning and upgrading of the portfolio's assets.
Mr Philip Pearce, Goodman's Managing Director, Greater China said, "We are very pleased with the robust leasing activity across our Hong Kong portfolio
during the quarter which has been achieved despite slowing demand from trading related sectors given the weakening global economic conditions."
The positive result stems from the exceptionally strong demand from local retailers and the extensive relationships we have built with customers across this sector. Three new luxury goods retailers were welcomed during the quarter, taking up a total of over 188,000 sq ft.
The three significant leasing transactions from retailers were:
- Chanel, a retailer of luxury products, has committed to 63,300 sq ft of space over three floors at Texaco Centre in Tsuen Wan;
- Zara, a major international fashion brand, has signed a lease for 43,000 sq ft also at Texaco Centre;
- Club 21, an international distributor of luxury brands such as Calvin Klein and Armani Exchange, has committed to 82,110 sq ft over three floors at Mita Centre in Kwai Chung.
Mr Pearce concluded, "Hong Kong's strong economic growth, coupled with the tight supply, has led market vacancy to drop to 1.4%, while market rents have grown by 6.3% during the quarter. We are confident that the upward trend in the Hong Kong market will continue for the remainder of the year, further boosting the demand for industrial space."
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For further information, please contact:
Marketing Director, Asia
Tel + 852 2249 3149 / 6111 9452
Associate Vice President
Tel +852 3716 9832 / 6685 0295
For more information, please go to www.goodman.com
About Goodman Texaco
For more information, please go to http://cn.goodman.com/en/property/properties-for-lease/texaco-centre