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Sandy Li

The Link Real Estate Investment Trust is to make its first foray into property development in a HK$10 billion joint venture retail-office development in Kwun Tong.
Link Reit and Nan Fung Development beat 10 other bidders to win the large commercial site for a higher than expected HK$5.86 billion.
Their winning bid also set a record high in terms of price per square foot in the district.
Sources said the site would include a retail complex, two grade-A office towers and a car parking area at a total investment of HK$10 billion.
The site could yield a total gross floor area of 883,897 square feet, with the winning bid representing HK$6,630 per square foot.
“The price per square foot is the highest in Kwun Tong,” said Alvin Lam Tsz-pun, a director at Midland Surveyors.
Surveyors previously estimated the 73,658 sq ft site could be worth HK$4.4 billion to HK$4.8 billion.
Link Reit owns 60 per cent of the joint venture and Nan Fung 40 per cent.
Lam said the development would become a new landmark as the site was located next to one of the 10 stops of the proposed HK$12 billion monorail that will run through the old Kai Tak airport runway, Kwun Tong, Kowloon Bay and part of Kowloon City. The area is being dubbed the city’s next Central.
“Link Reit has been actively participating in government tenders recently and finally secured a development site,” Lam said.
Link Management chairman Nicholas Sallnow-Smith said: “This is our first property development project, and our first venture in the office sector. It is complementary to our existing portfolio, enabling us to further diversify our business and capture the opportunities generated by Hong Kong’s economic growth.”
Link Reit said it would hold the grade-A office towers for long-term investment.
 
 
 


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