Kerry Properties intends to spin off its logistics arm in a Hong Kong listing. Kerry Logistics Network, a wholly-owned subsidiary, operated the largest distribution network and hub operations in greater China and Asean, Kerry Properties’ annual report said. It operated 30 million square feet of logistics space in more than 30 countries in five continents, of which 9 million sq ft were in mainland China. Former Singapore Foreign Minister George Yeo Yong Boon has been Chairman of Kerry Logistics since August last year. Net profit at Kerry Logistics, excluding a one-off gain from property revaluations, rose 10% last year to HKD815 million from 2011, as sales grew 20% to HKD19.3 billion. Kerry Logistics aimed to ride the growth of domestic consumption in China, leveraging its network in 2,600 cities and townships nationwide, the report said. Net profit margin, which exceeded 4% last year, was double the industry average of 2%, RCM Analyst Karen Chan said. Third-party supply-chain management, with a margin of 7%, was the key factor distinguishing Kerry Logistics from pure warehouse and freight-forwarding firms, she said. Of its 30 million sq ft of logistics space, a third is taken up by warehouses and nearly 40% by logistics centers. About 23% is used for port facilities. A third of the space is in Hong Kong, 27% in mainland China and 40% in other markets.
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