Goodman Group (Goodman or Group), the global integrated property group which owns, develops and manages industrial space, today announced that it has signed over 100,000 sqm of new leases during the first four months of 2013 across its China portfolio, maintaining total occupancy at 96%.
A number of major leasing transactions were completed during the first four months of the year in key logistics markets including:
The entire 42,600 sqm, Phase 1 development of Goodman Wuqing Logistics Centre was leased to a leading independent fashion group, Bestseller Fashion Group (Bestseller). This project is the Group’s first development to complete in Tianjin. The lease to Bestseller will support the continued growth of its business, and is indicative of the strong customer demand for warehouse space to in the region.
In another key transaction, DB Schenker, an existing customer at Goodman Jinxi Logistics Centre in Kunshan, has leased an additional 16,630 sqm after securing the contract for a major US fashion brand. It is a further extension of Goodman’s partnership with DB Schenker in the region, which comprises an existing lease for a total of 63,300 sqm at Goodman Jinxi Logistics Centre.
The Bestseller and DB Schenker transactions reflect the increasing demand for prime warehouse space in China for leading retailers.
Mr Karl-Heinz Emberger, Managing Director, Central/North China at DB Schenker said, “In China, securing high quality logistics space can be a challenge. As an existing global customer of Goodman, we are pleased that Goodman has been able to deliver a high quality product that reflects our customer’s requirements and expectations.”
At Goodman Yushan Logistics Centre which is also located in Kunshan, two local third party logistics providers have committed to this sought after destination, due to its proximity and connectivity to Shanghai and Suzhou. Shanghai Tianyi Logistics has signed a lease for 21,200 sqm, which will serve as the main distribution centre for its customer, BP China. Separately, Shanghai Jiayou Logistics, which is an existing customer at the property, will relocate to the recently completed Phase 2 development of Goodman Yushan Logistics Centre, increasing its overall occupancy to 10,570 sqm.
The Group’s newly completed flagship development in China, Goodman Pudong International Airport Logistics Park Phase 1, has recently secured a new lease with international logistics provider, Tigers for 4,550 sqm of warehouse space.
Huier Express, a local express logistics operator and an existing customer at Taopu Industrial Estate, has leased an additional 9,950 sqm of space to fulfill their expansion requirements, increasing the total area leased at the estate to 16,100 sqm.
Commenting on these recent leasing transactions, Mr. Philip Pearce, Managing Director Greater China for Goodman, said, “We are delighted to welcome new customers to our portfolio and pleased to be building on our relationships with existing customers as they expand their operations in mainland China. The leasing success we have achieved demonstrates the high quality of our product and service offering, and proven ability to attract and retain customers.”
He added, “We continue to see a shortage of prime logistics space, reflecting the growth in consumer demand, the shift to e-commerce and the rising middle class in China. As a result, we expect to see sustained rental growth in the range of 5% to 10%.”
The Group has development work in progress of approximately 400,000 sqm across a number of projects in key cities including Shanghai, Suzhou, Tianjin and Chengdu. It has a land bank in excess of 4 million sqm, ensuring the Group is well positioned to meet future market demand.