Business
Goodman Announces the Development of a Major Warehouse and Distribution Centre in Hong Kong
Goodman Announces the Development of a Major Warehouse and Distribution Centre in Hong Kong
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[{"type":"text","content":"\n\n\n\nDec. 8, 2009 (Canada NewsWire Group) -- SYDNEY, Dec. 8 /CNW/ -- Goodman Group (\"Goodman\") and Goodman Hong Kong Logistics Fund (\"GHKLF\") today announced that they, through their Goodman Interlink Limited joint venture, will commence construction of Interlink, a landmark warehouse and distribution development in Hong Kong. Located at Tsing Yi in the heart of the ports district, the 222,000 sqm (2.4 million sq ft) development over 24 levels will represent one of Hong Kong's largest and most versatile warehouses. The development is expected to have a total cost of A$430 million (HK$3,010 million)(1) and deliver a forecast yield on cost of 9%.Interlink is one of the first major warehouse and distribution centres to be developed in Hong Kong in almost a decade. New supply in the Hong Kong market is highly constrained and existing supply is increasingly being converted to other uses, such as residential and commercial. The development is strategically located with connections to container ports, Hong Kong International Airport and major highways to mainland China's borders. Construction is expected to commence this month and complete by January 2012.Two multi national third party logistics operators have pre leased and optioned approximately 50% of the total area. Significant enquiry is being experienced on the balance of the space with enquiry in excess of the remaining lettable area.Greg Goodman, Chief Executive Officer of Goodman commented on the project:\"Since our entry into the market in 2005, Goodman has established a strong business platform to become Hong Kong's leading asset manager of industrial and warehouse space. The commitment from our customers, investors and lenders now provides us with the opportunity to deliver one of Hong Kong's most modern and efficient warehouse and distribution facilities\".GHKLF comprises a small number of large institutional investors and has delivered very strong returns of 13.1%(2) p.a. since its inception in 2006. Interlink will contribute to providing investors with a quality product delivering improved sustainable returns.A three year project finance facility of A$170 million (HK$1,200 million) has been secured from four banks. The terms are favourable compared with current market conditions and are aligned to the development timeframe.Interlink will be a modern warehouse and ...