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

Thursday, 15 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:

China portfolio

+ 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
+ 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 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:
Besy Leung

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

Citigate Dewe Rogerson
Jasmine Yap 
Co-Managing Director 
Tel +852 3103 0108/9325 3363 

Ricky Tam
Tel +852 3103 0118/6605 9808

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom and North America. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist fund managers of industrial property and business space globally.

Goodman’s  global  property  expertise,  integrated  own+develop+manage  customer  service offering  and  significant  fund  management  platform  ensures  it  creates  innovative  property solutions that meet the individual requirements of its customers, while seeking to deliver long- term returns for investors.

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