Goodman buys industrial buildings in Hong Kong

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The Chuan Kei factory building in Kwai Chung (Source: JLL)

The Goodman Group agreed late last month to acquire nearly three-quarters of an industrial building in the New Territories from the family of Hong Kong’s late “shop king” Tang Shing Bor, as the Australian developer looks to expand its now fully leased portfolio in the city. according to a company spokesman

Goodman is acquiring 168,488 square feet (15,653 square meters) of space in the Chuan Kei Factory Building in Kwai Chung from Tang-family vehicle Stan Group, accounting for 72.53 percent of the entire building, for HK$520 million ($66.2 million). , while developers compete for indoor space in one of Asia’s busiest port cities.

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“Goodman’s current stabilized portfolio is over 99 percent leased and this was a good opportunity to secure more space to service the strong customer demand we are seeing,” a spokesman for the group told Mingtiandi. “Goodman intends to assume responsibility for facility management and modernize facilities to serve our growing customer base.”

If the sale by Stan Group, controlled by Stan Tang, the late real estate magnate’s youngest son, is completed this month, it will be the 19th major Hong Kong property sale by the Tang family this year during the Clan works to pay off debts related to ill-fated hotel projects and other challenges.

Expansion in Kwai Chung

Located at 15-23 Kin Hong Street, Chuan Kei Factory Building is a 5-minute drive from Kwai Hing and Tai Wo Hau MTR Stations, according to data from JLL. In the reported compensation, Goodman will pay the equivalent of HK$3,086 per square foot for the property.

Kristoffer Harvey Goodman

Goodman Greater China boss Kristoffer Harvey has acquired another industrial property in Hong Kong

Completed in 1977, the 15-story building is approximately 550 meters (601 yards) from Goodman’s existing logistics center on Castle Peak Road and less than 5 kilometers (3 miles) from the ATL logistics center, where the group has a 25 percent interest rate.

Should Goodman be able to acquire ownership of the entire building, the property could qualify for a tenure relaxation for redevelopment under Hong Kong’s Revitalization Policy 2.0, with the site potentially being used for data centers, cold storage or other industrial sites, according to JLL purposes could be useful.

“Kwai Chung is known as a traditional industrial district and is well connected to the rest of Hong Kong with a robust public transport system and a plethora of bus and minibus routes,” said Bill Chan, senior director and head of industrial services at Colliers.

Goodman was among the unsuccessful bids for a logistics site on Container Port Road in Kwai Chung, which ESR won last month with a bid of nearly HK$5.26 billion, a bid demonstrating foreign investors’ confidence in the city’s industrial market, said Chan.

Aside from Goodman’s logistics facilities in and around Kwai Chung, the industrial-focused developer acquired the first to fourth floors of the Seapower Industrial Center in Kowloon East in February last year for HK$570 million.

Outside Hong Kong, Goodman in May agreed to sell six logistics properties in the mainland cities of Chengdu and Wuhan to NWS Holdings, an infrastructure investment subsidiary of New World Development, for RMB2.29 billion (US$337.2 million).

Shop King Liquidation

The deal with Kwai Chung, reportedly signed in July, marks a second major sale by the Tang family in just over a month. The transaction comes after the family — which has been

under pressure to liquidate her assets over the past two years – she reportedly sold a Kowloon City apartment building to K&K Property in late June for HK$1.14 billion, around HK$160 million less than what the Tangs Paid for the purchase of the property in 2017.

In May, the Tangs sold two retail properties – one each in Beacon Heights Shopping Center and one in Wai Ching Court in Kowloon – for a combined HK$129 million.

The family reportedly sold two units at the Centro-Sound Industrial Building in Shau Kei Wan, Hong Kong Island, for HK$55 million in the same month, suffering a loss of HK$33 million, according to local media reports.

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