Major Chinese domestic delivery provider SF Express is to lease a 22,000 sqm facility at Xian in western China from the Goodman Group as it continues its network expansion.
The Goodman Group, the global property group which owns, develops and manages industrial space, last week held a groundbreaking ceremony for its first project in Xian, the Goodman Xian North Logistics Centre.
SF Express is the first customer at the logistics site. Goodman said it will develop a 22,000 sqm built-to-suit facility for the express company, representing approximately half of the total leasable area of the first phase of the development.
This built-to-suit facility will serve SF Express customers, mainly operating in the e-commerce sector and is specifically designed to meet SF Express' operational needs for their expanding network. The facility also includes traffic lanes and a parking area for large trucks, to allow for the efficient and convenient mobilisation of SF Express’ vehicle fleet inside the warehouse.
This will be the fourth development that Goodman has undertaken for SF Express, who have committed to a total of 105,000 sqm within the Goodman portfolio, in Tianjin, Chongqing, Hefei and now Xian.
Philip Pearce, Managing Director Greater China for Goodman, said, “We are very excited to commence our first development project in Xian, an important cultural and industrial centre of northwest China. We are also pleased to welcome SF Express, our first customer at the development. Their built-to-suit facility is yet another testament to the trust that our customers have in Goodman’s ability to successfully deliver customised logistics solutions, which meet industry specific requirements.”
Hou Wenyan, President of Western China Region for SF Express, said: “As we continue to expand our business in China, we are placing greater emphasis on the development of the northwestern region. We are pleased to have a strong and reliable partner like Goodman, which provides us with high quality logistics facilities and services to support our expansion in the region. We look forward to building a mutually beneficial relationship with Goodman over the long-term.”
Goodman Xian North Logistics Centre is strategically located in the Xian Economic and Technological Development Zone, with convenient access to major expressways. It is also in close proximity to the Xian Xianyang International Airport. Once fully developed the site will comprise five single-storey warehouses, providing a total of 93,100 sqm of prime logistics space, with an estimated end value of RMB360 million. It will be developed in two phases, with the 44,400 sqm first phase to be completed in January 2016.
Pearce added: "Many of our local and international customers have expressed interest in this development, due to the lack of high quality logistics space on offer in the area. Given our strong track record, both globally and in mainland China, we are well-positioned to further expand in this region and secure high quality opportunities for our customers and investors.”
Goodman continues to undertake targeted investment in prime locations in China, with approximately 600,000 sqm of developments underway in a number of key cities across the country.
