Goodman Group has announced the successful completion of 90,910 sqm of leasing activity and approximately 40,000 sqm of development pre-commitments across its South Sydney portfolio, reflecting the ongoing strong demand for high quality warehouse and office space in the South Sydney market.
Goodman's development activity summary includes:-21,050 sqm warehouse and office facility for Toll at Port Botany
-11,830 sqm office and warehouse facility for a leading food manufacturer at Port Botan
-4,320 sqm corporate office pre-committed by KONE at Masco
-2,796 sqm corporate office pre-committed by Qudos Bank (formerly Qantas Credit Union) at Mascot.
Stabilised portfolio leasing summary:-Leasing transactions totalling 90,910 sqm
-62,169 sqm of renewals with existing customers
-The addiiton of 15 new customers to Goodman's South Sydney portfolio.
Goodman General Manager, Australia, Jason Little said, “The strong leasing activity we are experiencing in South Sydney demonstrates the demand for flexible high quality industrial space close to key infrastructure such as Port Botany and Sydney Airport. Similarly, high quality commercial office space, with flexible fitout options and proximity to public transport and local amenities, continues to be important for our customers in their decision making process.”
Goodman is currently developing a 41,250 sqm industrial unit facility at Port Botany Industrial Estate in Banksmeadow, with completion scheduled for June 2016. The development is 89% committed, with Toll securing a 21,050 sqm warehouse and office facility for 15 years, while a leading food manufacturer has also committed to an 11,830 sqm warehouse and office facility on a 12 year lease term. Separately, a single 4,790 sqm warehouse and office unit is available for lease at the estate.
In addition, the development of three buildings totalling 28,737 sqm at Connect Corporate Centre, Mascot, is in progress, underpinned by commitments from Pullman Hotels and Resorts, Qudos Bank and Kone. Qudos Bank has committed to 2,796 sqm office space on a ten year lease term with development due for completion in May 2016. The adjacent 229 room five star Pullman Hotel is also due for completion in May 2016.
Construction of the second 11,730 sqm five level commercial office building commenced in February. KONE, a global leader in the elevator and escalator industry and an existing Goodman customer, has pre-committed to a 15 year lease for 4,320 sqm of office space. Goodman is in active negotiations with interested parties for the remaining office space at Connect Corporate Centre.
Goodman worked closely with both KONE and Toll, relocating these customers from Goodman’s Euston Business Park and Mitchell Industrial Estate in Alexandria respectively. The relocations were undertaken to assist with the realisation of the Group’s urban renewal objectives.
Separately, lease renewals for over 62,160 sqm were completed across six properties in the South Sydney portfolio, on behalf of customers including Linfox Australia, Napoleon Perdis Cosmetics and UPS. Goodman also added 15 new customers to its portfolio, leasing a combined total of 28,741 sqm.
Jason Little added: “Goodman’s portfolio of 33 properties in the South Sydney precinct, situated between Alexandria and Banksmeadow, gives us the flexibility to service our customers’ evolving business space requirements in this highly sought after location.”