Golden Plaza sold for HK$530m

PUBLISHED : Saturday, 10 March, 2007, 12:00am
UPDATED : Saturday, 10 March, 2007, 12:00am

Goldbond Group Holdings has sold Hong Kong's first shopping centre specialising in wedding services, the Golden Plaza in Mong Kok, to an investment fund for HK$530 million.

Shares of Goldbond soared 59.79 per cent or 11.6 HK cents on the news yesterday to close at 31 HK cents. The stock has gained 83 per cent this year.

Goldbond yesterday announced the sale of Golden Plaza to Bliss Investment, which market sources said was Merrill Lynch's property investment unit. The US investment bank was not available for comment.

Golden Plaza on Nathan Road next to Allied Plaza has four storeys with a gross floor area of 45,860 square feet. Its occupancy rate was 95 per cent at the end of last year.

Property agents said the occupancy rate stayed at more than 90 per cent in the last few years due to the mall's specialisation, wedding services. Monthly rental income at the Golden Plaza is about HK$2.5 million, providing a rental yield of 5.67 per cent.

This is the second major shopping mall deal this year in the district after the HK$750 million purchase of the Mong Kok Computer Centre by Singapore's Alpha Investment Partners in January.

A valuation report from Knight Frank says the Golden Plaza is worth HK$500 million, allowing Goldbond to book a disposal gain of about HK$30 million.

Kent Fong, director of the investment department of DTZ Debenham Tie Leung, said many foreign investment funds are interested in shopping malls in Hong Kong's traditional shopping areas.

'The funds expect rents to grow significantly after they revamp the shopping malls,' he said.

However, Mr Fong said the buyer would retain the special theme of the Golden Plaza even if they revamped it.

'It's a well-known wedding services mall in Hong Kong, which is unique in the market,' he said.




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