Sun Hung Kai Properties expects rental income at its new flagship shopping mall in East Kowloon to beat its forecasts by as much as 20 per cent, underpinned by strong consumer demand and a robust economy.
The developer said the 630,000 square foot APM Mall - part of the fifth phase of its Millennium City commercial complex in Kwun Tong - should comfortably hit its original target of $240 million annual rental revenue, exceeding that amount by between 10 per cent and 20 per cent.
'Sentiment in the retail sector has been strong since mid-November,' said Maureen Fung Sau-yim, general manager of leasing manager at Sun Hung Kai Real Estate Agency.
'Business for our retail tenants has jumped 20 per cent on average so far and our turnover rent will ride on this rally.'
About 60 per cent of turnover rent at APM was derived from entertainment, food and beverage tenants, while the rest came from retail tenants, Ms Fung said.
The monthly base rent for the 176 APM tenants ranged from $80 to $200 per square foot, she said.
Among the shopping centre's tenants, electronics retailers had the highest monthly turnover per square foot at $3,000, Ms Fung added.