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Goodman to buy logistics site in Hong Kong for $350m

LBR Staff Writer Published 04 May 2018

The Hong Kong Lands Department has selected Goodman as successful tenderer to purchase a prime logistics land site in Tuen Mun, Hong Kong for around HK$2.75bn ($350m).

Goodman Hong Kong Logistics Partnership, a business unit of Goodman, has won the tender to develop the logistics facility on the 32,000m² site.

The logistics site is close to new infrastructure, including the Tuen Mun–Chek Lap Kok Link that connects the Northwest of Hong Kong with the Hong Kong International Airport and the Hong Kong–Zhuhai–Macau bridge.

The site offers better access for distribution to the major consumption hubs of Hong Kong and Greater Bay Region, which house over 100 million people, making it suitable for a range of occupiers.

In Hong Kong, Goodman manages logistics and industrial properties with an area of around 14.8 million ft² and valued at around HK$34bn ($4bn).

Goodman said that 99% of its portfolio in Hong Kong was occupied by over 200 domestic and international customers in the last five years.

Goodman Group Greater China CEO Kristoffer Harvey said: 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.

“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 has 20% equity interest in the Goodman Hong Kong Logistics Partnership, while the global capital partners own the remaining 80% interest in the partnership.

In December 2017, Canada Pension Plan Investment Board (CPPIB) invested HK$1.94bn ($249m) to purchase a stake in Goodman Hong Kong Logistics Partnership (GHKLP).

Image: Goodman Hong Kong Logistics Partnership to develop modern logistics facility on 32,000m² site in Hong Kong. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.