Australia's Macquarie Goodman has acquired an industrial building on Tsing Yi for about HK$700 million, according to Flourish Property Agency. Andrew Lai Kwok-kai, a general manager of development and investment, yesterday said Sino Cayman No2, a unit of Macquarie Goodman, bought the block at 35-47 Tsing Yi Road near Container Terminal 9. The property has a gross floor area of 1.52 million square feet. Rents in the building range from HK$6 to HK$7 per square foot. Mr Lai said the property was on a 305,000 sq ft site that could be redeveloped into an industrial building with a total gross floor area of 2.89 million sq ft. That translates into a land price of HK$241 per square foot. He expects the building, next to Route 8 and the East Tsing Yi Viaduct, to benefit from the opening of the highway by the end of this year. Route 8 and the viaduct will link up Tsing Yi, Cheung Sha Wan and Cheung Tsing Highway. Meanwhile, Colliers International research shows Hong Kong was the world's most expensive city to buy an industrial site last year. The accommodation value of industrial sites in the city ranged between HK$800 and HK$850 per square foot, the firm said in the report released yesterday. Wayal Chiu Wai-hung, a director of the industrial division at Colliers, said high land prices in Hong Kong stemmed from limited land supply and strong industrial demand underpinned by a booming logistics sector. 'Prices of industrial buildings in Hong Kong are relatively cheap compared with office and residential blocks, and offer attractive and stable returns,' Mr Chiu said. Although whole-block industrial deals fell from 48 in 2006 to 43 last year, the total price rose 16.2 per cent year on year to HK$8.08 billion from HK$6.95 billion, Colliers data shows. Mr Chiu expects foreign funds to continue investing in quality whole-block industrial properties to be renovated into logistics centres, given the attractive rental yield of 7 per cent a year for such assets. But he expects the number of deals this year to drop due to declining supply, and prices of industrial buildings to rise more than 10 per cent this year. Warehouse space in Hong Kong ranked seventh behind those at London's Heathrow, three cities in Japan, Norway and Ireland on a list of the world's most expensive cities last year. The research said trade and movement of goods were expected to decline in anticipation of a decelerating global economy this year. However, Colliers research and consultancy department director Simon Lo said: 'Even though the subprime crisis may hurt the global economy, local spending is very strong and the buoyant mainland economy will continue to benefit Hong Kong [and its trade performance].'