(16 May 2022, Hong Kong) NWS Holdings Limited (“NWS” or the “Group”, HK Stock code: 659) today announces the acquisition of 100% interest in a portfolio of six premium logistics properties in Chengdu and Wuhan from Goodman China Logistics Partnership, an industrial and warehousing property fund managed by Goodman Group for a total consideration of RMB2.29 billion (approximately HK$2.66 billion), with an aggregate Gross Leasable Area and pipeline of approximately 531,000 sq.m. (approximately 5.7 million sq.ft.). NWS will partner with Goodman Group to jointly manage the portfolio and to explore further collaboration opportunities in the Mainland. Upon completion of the acquisition, the portfolio will bring immediate contribution to the cash flow and financial performance of the Group.
The premium logistics properties portfolio is strategically located in the western and central economic and transportation hubs in the Mainland. As of 31 December 2021, the five operating logistics properties generated gross income of over RMB100 million. A developing logistics property is estimated to be completed this year. Included in the portfolio, there is also a land parcel to be developed. With the additional logistics property, rising demand and ongoing expansion, it is anticipated that the rental income will continue to grow steadily.
The portfolio achieved an average occupancy of approximately 90%. Tenants include leading third-party logistics, international retailers, and renowned e-commerce companies, with weighted average lease expiry of 3.1 years. Sustainability features including LED lighting, rainwater reuse and roof safety system are all implemented in the properties
Eric Ma, CEO of NWS said, “The Group is proactively integrating into the National Development. The development of the logistics industry is underpinned by supportive government policies. It is also benefiting from the thriving e-commerce and the fast-developing multimodal transportation, further bolstering its market demand. The Group is therefore confident about the outlook of the industry in the Mainland and Hong Kong, and we are committed to expanding our business in this field.” Gilbert Ho, COO of NWS said, “The logistics industry offers excellent prospects, and in recent years, the Group has been proactively building a unique logistics ecosystem, in order to seize its tremendous growth potential. As we have always been targeting high-quality logistics assets that generate strong cash flow and solid returns to enhance the quality of our business portfolio, as well as create synergies with the Group’s existing investments, today’s acquisition is well in line with the Group’s investment strategy. It also marks a milestone in our strategic expansion plan in the logistics segment by partnering with Goodman to explore collaboration opportunities in the Mainland. We look forward to bringing long- term and sustainable growth to our stakeholders, while maintaining a sustainable and progressive dividend policy.”
Paul McGarry, Head of Asia, Goodman Group said, “Goodman’s collaboration with NWS into Mainland China, builds on our successful long-term partnership in Hong Kong at the ATL Logistics Centre. Combining NWS’ expansive network and Goodman’s expertise, this will support the logistics sector’s vital role in providing essential infrastructure to the growing digital economy in Mainland China. Goodman and its managed funds continue to invest and develop in Mainland China, maintaining a significant portfolio, and a strong development pipeline supported by strong customer demand.
- END -
