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Goodman Secures Prime Hong Kong Logistics Site for $467m

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Global logistics and property group Goodman has paid $467 million for a Hong Kong site that it plans to develop into a local logistics hub.

Goodman was the successful tenderer selected by the Hong Kong Lands Department to acquire a prime logistics land site in Tuen Mun, Hong Kong through the Goodman Hong Kong Logistics Partnership and will construct a high-quality, modern logistics facility on the 32,000 square metre site.

The site is located close to the new Tuen Mun-Chek Lap Kok Link, which connects the northwest of Hong Kong with the Hong Kong International Airport, and the new Hong Kong-Zhuhai-Macau bridge.

ASX-listed Goodman said the site has access to a catchment of more than 100 million people in Hong Kong and the broader greater Bay Area which will be attractive for occupiers.

Related reading: Goodman Group Lodges Proposal for $33m 'International HQ'

Goodman has an existing portfolio of logistics and industrial facilities in Hong Kong of 1.4 million square metres which has had an occupancy rate of 99 per cent for the last five years.

"The opportunity to acquire such a strategically located logistics land site is rare in Hong Kong and we're excited to have the ability to capitalise on the continued strength of the logistics market, and the pent-up customer demand that we can't satisfy within our fully-occupied existing portfolio,” Goodman’s chief executive for Greater China Kristoffer Harvey said.

“We plan to build a high-quality, modern logistics facility on the site capable of accommodating the latest advancements in automation and robotics rarely seen in Hong Kong.

“The Group is currently in active discussions with a number of our e-commerce and logistics customers to take up space in this modern development."

Goodman Group in February upgraded its full-year earnings forecast after reporting an interim operating profit of $421.3 million. It announced an upgraded EPS forecast of 46.5 cents, with an upgraded full-year distribution of 28 cents per security.

It reported a 98 per cent occupancy across its entire portfolio.

Online retail giant Amazon announced this week that it will open a second Australian distribution centre in Sydney’s west after signing a lease for a 43,000 square metre warehouse owned by Goodman in the south west suburb of Moorebank.

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Article originally posted at: https://theurbandeveloper.com/articles/goodman-secures-prime-hong-kong-logistics-site-for-467m