The Link Real Estate Investment Fund made its first foray into the private property market yesterday by announcing the HK$1.17 billion acquisition of Nan Fung Plaza effective next month.
The plaza, near Hang Hau MTR station in the Tseung Kwan O district and built by Nan Fung Development, is the Link Reit's first purchase of a private shopping centre.
'In the past, we only bought government projects,' said a spokesman from Link Reit, which owns more than 180 retail properties and car parks formerly held by the Housing Authority. 'But now we have started on something new. It will change the public's perception of Link Reit.'
He said the Link Reit was actively seeking to acquire other private shopping centres, particularly from developers which did not derive their core income from the arcades.
Locations which could generate synergy with existing Link Reit properties would be attractive, the spokesman said.
Link Reit will have more than half of the retail space in Hang Hau after the earlier acquisition of Hau Tak Shopping Centre, a public housing shopping centre.
The spokesman said the acquisition would allow Link Reit to plan the overall tenancy strategy in the district, including the types of trade, store size, and rent levels.