Cold Storage is HOT HOT HOT!
Discover this new form of storage as an asset class
17 JUNE 2021 | 15:00 - 16:00 (HKT, GMT+8)
The cold storage market has recently emerged as one of the surprise sought-after niche asset classes in Hong Kong. The market has seen a rise in demand from investors which has been fueled by the robust growth of supermarket sales, growing popularity of online shopping, and the pressing need for vaccine and drug storage. The market has seen three cold storage assets change hands in the first four months of 2021 with a total of HK$2.3 billion (US$0.3 billion), all of which were acquired by institutional investors demonstrating the market’s interest in the is industrial asset.
To uncover the what this means for the Self-Storage sector, in particular owners, operators and investors, we have invited industrial sector experts, John Davies, Office Services and Industrial Services, Colliers, Pureanae Jang, Valuation & Advisory Services, Colliers and Rosanna Tang, Research, Colliers as they share their views on the market and where the opportunities are.
Here are the key takeaways from the webinar:
Hong Kong’s cold storage market is experiencing strong demand with limited supply over the next five years.
Kwai Chung stands out as one of the most promising sub-markets, accounting for 44% of the licensed cold stores space and is well-connected via the highway network
Cold storage has an edge - cold storage asset sales in the first four months of 2021 totaled HK$2.3 billion, all of which were acquired by institutional investment funds
Cold storage rental premiums can be in the range of 20%-25% higher than traditional warehouses due to their enhanced building specifications and the relatively limited supply.
For investors, we recommend three strategies to enter this sector:
Built-to-suit, either on bare industrial land or redeveloping existing industrial buildings
Sale-and-leaseback, purchasing an existing asset and leasing it back to the original owner
Conversion from existing industrial assets, by adding state of the art technology to capture greater investment returns.
About the speakers:
John Davies
Office Services and Industrial Services
Colliers
Pureanae Jang
Associate Director | Hong Kong
Valuation & Advisory Services
Colliers
With over eight years of extensive experience providing valuation and advisory services to institutional investors, developers, banks and family offices, Pureanae brings comprehensive knowledge of major real estate sectors including residential, commercial, retail, industrial, hospitality and leisure.
Her specialisations include:
Single-asset and Portfolio Valuations
Appraisal Review / Management
Discounted Cash Flow Analysis
Feasibility Studies
Highest and Best Use Studies
Rosanna Tang
Research
Colliers
Rosanna Tang joined Colliers in 2019 as the Head of Research for Hong Kong & Greater Bay Area. With 15 years’ research experience, Rosanna has a deep understanding of all property sectors, research products and client requirements. With specific expertise in Office, Retail, Industrial and Hotel, Rosanna has continued to excel and is considered a leading authority on Hong Kong’s growing data centre market.
Moderate by
Nigel Smith
Managing Director | Hong Kong
Colliers
Nigel Smith is the Managing Director of Colliers in Hong Kong. He is responsible for daily operations, key strategic opportunities, driving client engagement and securing new business. He joined Colliers in 2015 and has since transformed the Hong Kong business into one of the leading firms in the market through a powerful combination of actionable research, innovative marketing and personalised service delivery.
He has over three decades of experience building relationships in the region and has represented over 100 million sq. ft. of Grade A office towers gaining recognition as a specialist in the design, branding, marketing and leasing of tall buildings, such as TAIPEI 101, Central 18 Zone at Two IFC and ICC in Hong Kong, Shanghai Tower and China World Tower Beijing.
Details
Date: 17 June 2021 (Thu)
Time: 15:00 - 16:00 (HK time, GMT+8)
Venue: ZOOM
Language: English