The burgeoning growth in online retailing and domestic demand in China has led Australian property group Goodman to seek further logistics and warehousing projects in Hong Kong and on the mainland, senior executives said yesterday.
Greg Goodman, the firm's chief executive, said: 'We are looking at other developments [in Hong Kong] if we get the land at the right price.'
Goodman said Hong Kong had seen a reduction in industrial space as sites were being redeveloped for residential use. 'We believe there is shortage of land' for logistics-related developments, he said, echoing the views of transport consultants and logistics companies.
Phil Pearce, the managing director for greater China, said the firm already had developments in Shanghai and Beijing and was 'targeting major first-tier' and adjacent cities.
Pearce shrugged off concerns about the impact of slower economic growth on the mainland, saying the 7.5 per cent growth forecast by Premier Wen Jiabao on Monday 'was still a high number'.
He said there was a shortage of sophisticated, high-quality logistics and warehousing facilities.
Goodman said 30 per cent of inquiries to the company for warehousing space on the mainland came from the online retailing sector.
They were speaking before the official opening of the HK$5 billion Goodman Interlink logistics and warehousing complex on Tsing Yi Island.
Goodman said 99 per cent of the 224,000 square metres facility had been let, including 36 per cent that was taken up by DHL Supply Chain. Other key tenants include Yusen Logistics, Zuellig Pharma and Nippon Express.
The building was developed by Goodman Hong Kong Logistics Fund, which has 12 other properties in the territory, making it one of the largest industrial landlords in Hong Kong with 907,000 square metres of space.
On the mainland, facilities are being developed by Goodman China Logistics, a joint venture with the Canadian Pension Plan Investment Board.
Goodman has US$500 million to invest in projects on the mainland. Pearce said US$400 million was contributed by the Canadian board and US$100 million by Goodman, while other 'capital providers' would increase the total investment to US$1 billion.
In November last year, the group broke ground on the second phase of the Goodman Beijing Airport logistics centre and the Goodman Jinxi logistics centre in Kunshan. The Beijing facility and the first phase of the Kunshan project are due to be completed in August.
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