Hong Kong, Dec 8, 2005 (ABN Newswire) - Macquarie Goodman (ASX: MGQ) has secured a warehouse/logistics property in the established industrial area of Tuen Mun, Hong Kong for AUD$80.0 million. The property is 100% leased and provides an initial yield of 7%.
The property, known as the Fountain Set Building comprises two buildings with a total lettable area of 93,220 sqm comprising 18 and 21 floors respectively. The individual floors are accessed via ramps to the lower levels and high volume goods lifts to the upper levels.
The vendor, a wholly owned subsidiary of Fountain Set (Holdings) Limited, a company listed on the Hong Kong Stock Exchange will leaseback 49,163 sqm or 52.7% of the building under two separate leases. The first lease is for an initial term of five years (22,901 sqm) and the second lease is for an initial term of two years (26,262 sqm). Other major customers occupying the facility include Bax Global, K Line Air Services and a US based logistics company, Uti.
The Fountain Set Building is located in Tuen Mun, an established industrial area, which is set to benefit from the new Hong Kong-Shenzen Western corridor providing a direct link into China. Being the fourth vehicular boundary crossing between Hong Kong and Southern China, the corridor is likely to enhance trade logistics operations and economic development in Hong Kong, and further strengthen the position of Hong Kong as the hub of the Pearl River Delta area.
Chief Executive Officer of Macquarie Goodman - Asia, Stephen Hawkins, said, "The acquisition of the Fountain Set Building is consistent with Macquarie Goodman's strategy of buying quality assets in key industrial locations. On completion, the Hong Kong portfolio we are managing will increase to over A$670 million."
"This acquisition increases Macquarie Goodman's geographic diversity in Hong Kong, positioning it well for the launch of a third party property investment vehicle in the first half of 2006" he said.
Settlement of the property is scheduled for February 2006.
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