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Link acquires No. 700 Nathan Road, a premium commercial complex in Mong Kok, which is planned to be converted into a Ginza-style commercial tower with retail and service theme to maximise its value. (retouched photos)
Link acquires No. 700 Nathan Road, a premium commercial complex in Mong Kok, which is planned to be converted into a Ginza-style commercial tower with retail and service theme to maximise its value. (retouched photos)
The commercial complex has a total gross floor area of about 284,800 square feet, and comprises an eight-storey retail and a 15-storey commercial tower.
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Link Asset Management Limited, as the manager of Link Real Estate Investment Trust (“Link”; Hong Kong stock code: 823), is pleased to announce that Link has won the bid to acquire a premium commercial tower with retail podium (the “Property”) at No. 700 Nathan Road, Kowloon, for HK$5.91 billion, which is approximately 8% lower than the Property’s appraised value (HK$6.4 billion).
George Hongchoy, CEO of Link Asset Management Limited, said: "As our first commercial property in core commercial district in Hong Kong, the successful tender for this asset in Mong Kok demonstrates our confidence in the long-term development of Hong Kong’s economy. As a bustling 24-hour shopping and entertainment area, Mong Kok is served by an excellent transport network, and enjoys very high foot traffic, which makes it possible to maximise the Property’s strategic location by turning it into a Ginza-style commercial tower with retail and service theme. Backed by our strong experience in running premium mass market retail centres, we are confident in our ability to unleash the Property’s full potential and raise its customer spending level to create higher value for our unitholders.”
Despite the recent weakness in the retail market, the impact on mass market and mid-tier segments is not significant, and sales at Link’s shopping centres continues to record stable growth, underlying the strength of Hong Kong’s economy. Link will hold the Property for long term, as our vote of confidence in local consumer spending. Completion of the transaction is expected to take place in April 2016. The Property’s asset enhancement project, together with the related research and planning, is initially estimated to take 18 months.
With a total gross floor area of about 284,800 square feet (26,411 square metres), the Property is located at No. 700 Nathan Road, Kowloon. Dedicated for retail, F&B and service uses, the Property comprises an eight-storey retail (two basement floors connecting to Mong Kok MTR Station and a podium of six retail floors) and a 15-storey commercial tower.
Further Portfolio Enhancement
Asset disposal is part of our capital recycling strategy to create more value for our unitholders. Being a responsible manager, we have been assessing the performance of our portfolio, with a view to identifying more opportunities to streamline and improve operating efficiency.
In addition, Link Asset Management Limited today announced that it will invite interest from the market for the purchase and possible disposal by Link of nine properties. Invitation for interest to tender for any or all of these nine properties will commence on 22 February 2016.
For information about the nine properties, please refer to the announcement in our corporate website.
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