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 will be a modern warehouse and distribution centre that incorporates operational
efficiency with environmental and sustainable design and aims to be the first of its type to obtain
the HKBEAM (Hong Kong Building Environments Assessment Method) accreditation and award.
It has also been designed to achieve accreditation from LEED (Leadership in Energy and
Environmental Design), the US Green Building Council rating system.
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.
“We are delighted with the support this project has received from the Group’s investors, banks
and customers. We have retained our global operating platform and have reactivated our
development pipeline. With over 500,000 sqm (5.4 million sq ft) of development opportunities
around the world, Interlink is a strong indicator of the Group’s ability to leverage its leading
market position to capitalise on attractive growth opportunities.
Goodman continues to enjoy the success it has had in the Greater China region as a
cornerstone investor in GHKLF. While Interlink pre dates our strategic relationship with CIC and
our China joint venture with CPPIB, this project underscores our aim to explore and secure
further growth opportunities in China, one of the fastest growing economies in the world,” added
Mr Goodman.
