SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”), is pleased to announce that it has been awarded a prime site in Hong Kong SAR (“Hong Kong”) to develop a modern, multi-storey ramp-up logistics facility in the city. The site, measuring about 21,000 square metres (“sqm”) with a permissible gross floor area (“GFA”) of 85,000 sqm, was awarded at a price of HKD 1.69 billion.
Located at Tsing Yi, New Territories, the site is in close proximity to the Kwai Chung Container Terminal, and is also well connected by highways to the city centre, the Hong Kong International Airport and the mainland China border. It is in a choice location for freight forwarding and local distribution.
Hong Kong has been a bright spot in Asia’s warehouse sector. Benefitting from its strategic location in the intersection of global and regional shipping lines as well as from robust domestic retail sales, there is strong demand for prime and modern warehouse space by retailers and third party logistics service providers. Coupled with a limited new supply of warehouse space, vacancy rates are currently at their lowest in 20 years. The supply of warehouse space in Hong Kong may shrink in the coming years as more industrial buildings are being redeveloped for alternative uses under the government’s revitalisation scheme.
Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer, said, “We are pleased to have secured this site. We have been present in Hong Kong since 2006 and have gradually scaled up our business in this key market. This project will be Mapletree’s first greenfield development in Hong Kong. We believe that this is the last sizeable and quality site in Tsing Yi that is available in the near future. We look forward to building and completing this modern and high quality logistics facility in three years time to serve the growing logistics demand in Hong Kong.”
Mr Hiew added, “Our associate Mapletree Logistics Trust (“MLT”) has been on the lookout to acquire more high quality logistics assets in Hong Kong to add to its portfolio but has not been successful since its last acquisition in 2007. If Mapletree were to divest this property in the future, it will offer MLT the first right to acquire this asset.”
To tap on the growing demand for modern logistics facilities, Mapletree has been actively exploring other strategic locations for logistics development in Asia. Currently, Mapletree has 11 logistics development projects located in China, Malaysia, Vietnam and Japan with total GFA of 1.4 million sqm. The Mapletree Group also comprises MLT, which as at 31 March 2013 has a portfolio of 111 logistics facilities across Asia (total GFA of 2.9 million sqm) valued at S$4.07 billion. Eight of the facilities are located in Hong Kong with a value of HKD 4.5 billion (approximately S$728 million).
