Playmates Properties to focus on rent revenues
PLAYMATES Properties Holdings is considering letting out properties originally intended for sale after being approached by 'quality clients' looking for long-term leases.
Executive director Clara Chan said at the opening of Playmates' new $880 million headquarters at 100 Canton Road that it intended to concentrate on renovating existing properties and improving returns from rents.
'It is not a good time to be releasing new properties on the market so we will wait until the situation matures.' The 23-storey headquarters now fully leased houses Hong Kong's Hard Rock cafe, which will open next month.
The firm expects $4.6 million income from rents. But properties originally intended for sale may be given long leases.
The entire premises of New Mandarin Plaza may be leased to a Western furniture maker and plans to redevelop Shui Hing House - scheduled for 1996 - may also be postponed if leased out to several department stores.
Although market conditions were unfavourable and banks were reserved about the property market near the end of the year, she expected the climate to improve next year.
During the first half of this year, Playmates Properties had been dominated by sales but the second half concentrated on returns from rents, she said.
Properties in Happy Valley, North Point and several in Shanghai and Dalian on the mainland have been scheduled for sale next year.
Developers had sufficient financial strength to wait until next year to sell. She said developers would not rush to sell, which would destabilise the market, saying the market was presently healthy.
She admitted rents were falling in Central and it was difficult to find tenants.
