SINGAPORE (EDGEPROP) - Global real estate investment management firm Heitman has acquired a 100,000 sq ft logistics asset in Hong Kong. The firm says it will commence a fit-out of the property to repurpose it into a cold storage logistics facility.

See also: Heitman acquires two warehouse facilities in Yeoju city, South Korea

The property is at 6 Yip Cheong Street in Hong Kong’s Fanling industrial district. Based on its gross floor area, the property is one of the largest industrial properties in Hong Kong’s industrial submarket. The Fanling district is also expected to benefit from the growth in the housing development, cross-boundary travel, and logistics infrastructure build-up in the area.

Heitman says that the planned cold storage facility has already been fully pre-let to end-users. The acquisition was made in conjunction with Heitman’s global core-plus investment strategy.

“We are pleased to add to our existing industrial and commercial portfolio in Hong Kong by acquiring this strategically located asset from a rare corporate divestiture and look forward to executing our business plan of transforming the property into a best-in-class cold chain logistics centre,” says Brad Fu, head of Asia-Pacific acquisitions at Heitman.

“Demand for specialised en-bloc facilities will continue to grow on the back of close to full occupancy of cold storage space currently across Hong Kong,” he adds.