SYDNEY, Aug. 12 /CNW/ -- 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 service focus.
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: http://www.goodman.com
Group Corporate Communications Manager
FD - Financial Dynamics
SOURCE Goodman Group
For further information: For further information: Mathew Werner, Group Corporate Communications Manager-Goodman Group, +61-2-9230-7159; Dominic Morgan, Managing Director-Financial Dynamics, +44-20-7269-9343 Web Site: http://www.goodman.com