Australian logistics specialist Goodman aces Hong Kong firms with US$350m bid for Tuen Mun site
Analysts say the high cost of land has deterred companies from the mainland from putting in a bid for the 340,870 square feet site in Tuen Mun
Goodman HK Investments, a subsidiary of Australia-based Goodman Group, bagged a large plot in northwestern Hong Kong for HK$2.75 billion (US$350.3 million), the first logistics site the government put on tender in five years which surprisingly did not attract a single Chinese e-commerce behemoth.
Westlink Investments, a unit of Goodman, won the logistics site in Tuen Mun, the government said on Wednesday, beating local developers including Sino Land, Sun Hung Kai Properties and NWS Ports.
Management as well as Mapletree Investments, a subsidiary of Singapore’s Temasek Holdings.
The absence of Chinese e-commerce companies came as a surprise, which analysts said was because of the sky high prices in the city.
“The land is still too expensive for them,” said Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International. “It is good for mainland e-commerce companies’ to include Hong Kong in their portfolio, but is not a must-have place. They have large range of choices in other mainland cities to build their warehouses.”
The 340,870 square feet site on Siu Lang Shui Road, Tuen Mun, opposite the River Trade Terminal container port, has a plot ratio of 2.5 times and is expected to yield a total gross floor area of 852,000 sq ft for a five-storey logistics centre.