Henderson sees drop in rental income to $1.4b

Henderson Land Development has forecast rental income will drop to about $1.4 billion this financial year due to a reduction in the size of its retail portfolio following the sale of two shopping malls to its chairman.

Group chairman Lee Shau-kee last year paid $2.24 billion to buy Sheung Shui Centre in Sheung Shui and Metro City Plaza phase one in Tseung Kwan O comprising about 299,000 square feet of commercial and car-parking space.

Deputy marketing general manager Patrick Sit Pak-wing said yesterday the sale of the two arcades would lead to a fall in its rental income to about $1.4 billion from $1.6 billion.

He was speaking after the group launched its Metro City Plaza retail podium phases two and three for lease.

Metro City Plaza - the largest shopping arcade in eastern Kowloon - has been developed in three phases with a gross floor area of 1.5 million sq ft. Retail space in phases two and three amount to 1.3 million sq ft.

Mr Sit said more than 50 per cent of the space in phase two had been leased while up to 80 per cent of phase three had been taken.