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Tag: EC Mall

  • Solid six months for Link Reit

    Solid six months for Link Reit

    Link Reit has improved like-for-like revenue by 7 per cent in the first half year, with car park revenues up 10 per cent and retail up 6.6 per cent. The valuation of Link’s investment properties portfolio reached HK$209.8 billion, an increase of 3.3 per cent compared to March 31.

    In a results announcement, the company said its portfolio “continued to demonstrate its resilience and provide a productive platform for our tenants to thrive” during a time of geopolitical and economic uncertainty.

    “Our efforts invested in asset management have yielded positive results for our retail portfolio,” the company said. “As at September 30, occupancy rate for the portfolio remained stable at 95.5 per cent and the overall portfolio reversion rate stood at 22.5 per cent. Average monthly unit rent improved to $65.7 per square foot (psf) as at September 30, up from $62.4 psf as at March 31.

    Four asset enhancement projects were completed during the six-month period: Fu Shin Shopping Centre, Homantin Plaza, Sam Shing Commercial Centre and Wan Tsui Commercial Complex. Link’s asset enhancement pipeline is filled with projects in various stages, including 10 projects currently underway, five preparing to commence and 19 projects undergoing review.

    On the mainland, Link’s three properties – EC Mall in Beijing, Metropolitan Plaza in Guangzhou, and Link Square 1 & 2 in Shanghai – performed “satisfactorily”, contributing a combined revenue of $490 million and net property income of $390 million. Increases of 22.8 per cent and 25.8 per cent, respectively. The retail portfolio occupancy rate was 98.8 per cent.

    “The latest addition to the portfolio, Metropolitan Plaza, continues to be a growth engine with vast potential to be unlocked. EC Mall’s reversion rate stayed at a satisfactory level and the new tenants have been warmly welcomed by the local community. Reversion rate of retail portfolio stood high at 43.2 per cent. We will continue to tailor asset management strategies to enhance our asset qualities and offerings to the neighbourhoods,” the company said.

    CEO George Hongchoy said Link is “well-placed to sustain its long-term growth trajectory while keeping foundation of business fundamentally sound and resilient”.

    The company is considering acquisitions and/or divestments that can drive sustainable return long term.

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  • Hong Kong’s Link REIT posts double-digit growth

    Hong Kong’s Link REIT posts double-digit growth

    Link Asset Management, which manages Link Real Estate Investment Trust, Link REIT, increased both its revenue and net property income by double figures during the year ended March 31.

    Revenue rose 13.2 per cent to HK$8740 million (US$1125.68 million), while property income rose 14.9 per cent to HK$6513 million.

    During the year, the value of its investment properties portfolio – including property under development and properties in mainland China acquired during the year – continued to improve, reaching $160,672 million, an increase of 16.1 per cent.

    “The past 10 years have seen the transformation of Link from being a passive manager of a portfolio of legacy assets to becoming an innovative and world-class real-estate investor and manager,” says the group.

    An active and productive financial year saw the group capitalise on high-potential investment opportunities, and it also launched its new brand, in development for two years.

    It was also an important year for improving its portfolio, refining tenant mix and enhancing properties in Hong Kong, disposing of non-core properties and adding two properties in mainland China.

    “The management of our retail and car park facilities has evolved to be our strength and expertise,” says the group. “Through scalable innovation, we continue to leverage on this competitive advantage. This strategy is supported by close monitoring and analysis of changes in district demographics and shopper preferences.”

    Retail growth

    Despite a challenging economic environment in Hong Kong, the group’s retail portfolio showed resilience. There was growth in nearly all areas of retail through the group’s leasing strategy to attract more productive tenants, especially in the food and beverage sector, and to cut down large shops into smaller ones.

    Occupancy rate for the portfolio reached 96 per cent, with a record 6.7 per cent year-on-year retail rental growth.

    Link segmented its Hong Kong portfolio into three groups – Destination, Community and Neighbourhood – for management and marketing tailored to different types of tenants and shoppers. Destination shopping centres contributed to 17.1 per cent of the portfolio’s retail rentals.

    During the year, the group acquired EC Mall in Beijing and Corporate Avenue 1 & 2 in Shanghai. In Zhongguancun, the “Silicon Valley of China”, EC Mall offers mass-market retail products, and reached 100 per cent occupancy by the end of the financial year.

    In February, the group acquired 700 Nathan Road in Mong Kok through a government tender. With its location and catchment, the property will be converted into a retail podium and tower.

    Five asset-enhancement projects were also completed during the year: Tsing Yi Commercial Complex, Temple Mall North, Long Ping Commercial Centre, Wo Che Plaza and Tin Shing Shopping Centre.

    Temple Mall North (previously Lung Cheung Plaza) in Wong Tai Sin was rebranded and upgraded to offer more space and shops. The atrium was revamped to cater for marketing activities.

    Also rebranded was Wong Tai Sin Plaza, connected to Temple Mall North by a footbridge, as Temple Mall South. The two shopping centres are now run as one mall.

    Given changes in demographics from new residential projects nearby, Tsing Yi Commercial Complex and Long Ping Commercial Centre were also improved, and Tin Shing Shopping Centre has been reconfigured with its fresh market repositioned as a regional fresh market.

    Already the group has 11 enhancement projects in progress with another eight to start, and more than 16 other projects undergoing review.

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