Goodman delivers over 518,000 sqm of leasing transactions across key markets in Australia, Asia and EuropeBy Goodman Group, PRNE
Wednesday, August 11, 2010
SYDNEY, August 12, 2010 - Goodman Group ("Goodman" or "Group") (ASX: GMG) today announces the
completion of more than 518,000 sqm of leasing transactions across key
markets in Australia, Asia and Europe:
+ In Australia, over 103,000 sqm of leases have been achieved in Goodman's South Sydney portfolio + Hong Kong has completed over 139,000 sqm of leasing transactions + In Continental Europe, approx. 275,000 sqm of logistics and office space has been leased across several countries.
Goodman Group CEO, Greg Goodman said: "The leasing success achieved
highlights the momentum that has continued to build across the Group over the
past few months. Our extensive operating platform, quality people and product
offering, have enabled us to leverage our well established customer
relationships around the world to capture opportunities and deliver effective
solutions for our customers' individual business requirements."
Australia - South Sydney
In Australia, the South Sydney market has generated considerable leasing
activity in recent months, reflecting increased port activity and benefitting
locations between the air and sea ports and Sydney city. Goodman has
transacted a total of 103,765 sqm consisting of new leases and the renewal of
existing leases, equating to A$13.1 million of net rental income per annum.
These leasing results have also contributed strongly to the overall
Australian portfolio's customer retention rate of 73% on lease renewals and
an occupancy rate of 96%.
Key South Sydney leasing transactions undertaken include a lease renewal
of 11,956 sqm for telecommunications company, Optus Administration Australia
for a 10 year term; a new 18,063 sqm lease to IT services provider, Equinix
Australia on a 15 year term; and a new lease to food importer, F Mayer
Holdings for 10,707 sqm on a 12 year term.
Goodman's General Manager Australia, Jason Little noted: "Our leasing
success in South Sydney and across the broader Sydney market can be
attributed to our focus on delivering superior customer service and doing the
fundamentals of our business well. This is in turn reflected in the quality
of our customer base, strong occupancy and long weighted average lease expiry
of 4.7 years."
In Hong Kong the Group has seen the demand for warehouse space continue
to grow for the quarter ended 30 June 2010, as a recovery in Hong Kong's
retail sector gathers pace. More than 139,000 sqm of warehouse space has been
leased during the quarter, equating to 15% quarter-on-quarter growth and
HK$107.7 million (approx. A$15.4 million) of net rental income per annum.
Eleven new customers, predominantly retailers and multinational logistics
companies, were added to the Hong Kong portfolio, with total new leases of
over 38,000 sqm signed. Of the new leases signed, 60% were undertaken to meet
the demand for expansion space by existing customers. Lease renewals amounted
to more than 101,000 sqm and Goodman was able to maintain a customer
retention rate of 76% on lease renewals and an overall occupancy rate of 94%.
Philip Pearce, Goodman's Managing Director, Greater China commented:
"This is a pleasing result for our Hong Kong operations, as we have added new
customers to our portfolio whilst continuing to meet the growing business
needs of our existing customers. The scale of our business in Hong Kong, our
successful asset management approach and the quality management of our
properties positions us well to capture the demand for warehouse space and
associated rental growth, which is expected to continue."
Across Continental Europe, Goodman has secured over 275,000 sqm of
leasing transactions extending from France and Germany to Benelux, Spain and
Hungary, reflecting an increase in development and leasing activity in the
European market. The completed transactions equate to approximately euro 14
million (approx. A$20 million) of net rental income per annum. Significantly,
Goodman's European team has signed new leases for more than 140,000 sqm of
logistics and office space. Approximately 135,000 sqm of space has also been
renewed for existing customers, reflecting the strength of Goodman's customer
Leasing transactions were undertaken with a number of blue chip customers
across Europe, including Amazon, Oriflame and Ingram Micro signalling
Goodman's high quality customer base. The strong leasing results achieved are
highlighted by a 79% customer retention rate on lease renewals and occupancy
of 96% within Goodman's European Logistics Fund.
Goodman's Chief Executive for Continental Europe, Danny Peeters said:
"This considerable leasing success demonstrates the quality and scale of our
European platform, together with our ability to leverage new business
opportunities while strengthening our established customer relationships."
About Goodman Group (ASX: GMG) Please visit: www.goodman.com Contacts: Goodman Group Mathew Werner Group Corporate Communications Manager Tel: +61-2-9230-7159 FD - Financial Dynamics Dominic Morgan Managing Director Tel: +44-20-7269-9343
Mathew Werner, Group Corporate Communications Manager-Goodman Group, +61-2-9230-7159; Dominic Morgan, Managing Director-Financial Dynamics, +44-20-7269-9343
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