Fortune Real Estate Investment Trust (Fortune Reit) announced it would spend HK$100 million upgrading its retail properties in Sha Tin ahead of its debut in Hong Kong tomorrow. Deputy chief executive Justina Chiu Yu said the renovation work would include the retail properties in City One Sha Tin and Ngan Shing Commercial Centre. Fortune's debut is a listing by way of introduction and does not involve selling new shares. 'The work will be divided in three phases and the first phase will be completed in September,' Chiu said. She expects the whole project to be finished in two years. Fortune Reit chairman Justin Chiu Kwok-hung believes the completion of the makeover could achieve double-digit growth in rental income. The City One Sha Tin retail property comprises 414,469 square feet with 98.2 per cent occupancy rates as of December last year. Chiu, father of Justina Chiu, said the 310,084 sqft Ma On Shan Plaza would be the next target for renovation. He said about 40 per cent of the portfolio was due to be renewed every year. Rentals for the renewed leases have recorded double-digit growth from the previous lease. Fortune Reit owns 14 retail properties in Hong Kong with a total gross floor area of 1.98 million sqft. Other major shopping centres include the Metropolis Mall in Hung Hom and Metro Town in Tseung Kwan O. Singapore-listed Fortune Reit announced it would seek a dual primary listing in Hong Kong through introduction in February. The trust was listed in Singapore in 2003. Cheung Kong (Holdings), which holds 31.6 per cent of Fortune Reit, will transfer 15 per cent of the trust to Hong Kong before the listing. The dual primary listing would enable the firm to gain direct access to Hong Kong's capital market. Fortune Reit recorded an 11.6 per cent increase in distribution income of HK$337.8 million last year from the previous year.