The Link Management Limited, as the manager of The Link Real Estate Investment Trust (“The Link REIT”; Hong Kong stock code: 823), is pleased to announce that, The Link REIT through the joint venture with Nan Fung Development (“Nan Fung”), has successfully tendered for the Government Land (“the Land”) in Kwun Tong at the land premium of HK$5.86 billion.
Nicholas Sallnow-Smith, Chairman of the Board of The Link Management Limited, said, "This is our first property development project, and our first venture in the office sector. It is complementary to our existing portfolio of retail and car park assets, enabling us to further diversify our business and capture the opportunities generated by Hong Kong’s economic growth. We look forward to partnering with Nan Fung to deliver a high-quality project.”
George Hongchoy, Chief Executive Officer of The Link Management Limited, said, “This is our first attempt at land tender. We are delighted to have won this bid for a prime commercial site in a district rapidly becoming Hong Kong’s new central business district. This will be a Grade A office which we will hold for long term investment. It is our pleasure to join hands with Nan Fung, one of the largest property developers in Hong Kong, to undertake this major development. This is a valuable opportunity to add to our existing strategy. We would like to thank our partners and our internal teams for their contribution to this successful first bid, and our unitholders for supporting the expansion of our investment strategy to include property development activities.”
Managing Director of Nan Fung Development Limited, Donald Choi Wun-hing commented, "We are happy to work with The Link REIT to undertake this major office development. The land is well-located in Kowloon East - the new CBD and is one of the most attractive commercial development opportunities under current government land sale programme. It will benefit from the many infrastructure projects and government initiatives to transform the area into an attractive new CBD for 21st century Hong Kong. "
The Land is situated at the junction of Hung Yip Street, Wai Yip Street, Shun Yip Street and Hoi Bun Road at Kwun Tong. It is located in Kowloon East, where a great number of The Link REIT’s retail properties are located. It has a site area of approximately 6,843 square metres, with a maximum gross floor area of 82,116 square metres. The development project is expected to be completed on or before 30 June 2020. The Link REIT has a 60% interest in the project while Nan Fung has a 40% interest. Nan Fung, which is highly experienced in property development, will be responsible for project supervision and construction management while The Link REIT will focus on leasing and property management.
The Kowloon East district is poised to be the new central business district with high potential under the “Energize Kowloon East” movement in Policy Address Year 2011-12. Offices in Kowloon East have recorded strong take-up rate and steady rental growth in the last ten years. The district is also benefiting from Kai Tak Development as it will increase residential and office population, tourists and business activities.
The Link REIT’s core business continues to remain growing our property portfolio, focusing on asset management, asset enhancement and asset investment.