Hong Kong's Wen Wei Po (Reporter Leung Yuk Cum,Ngan Lun Lok) The Link Real Estate Investment Trust ( 0823 ) to sell its five malls through a private tender ,the tender closed yesterday.The spokesman of The Link said,it is examining the information,the tender results will be announced later.As the market is passing then news of are not allowed the foreign fund to enter the bid,only recruit the local long-term income tenants,so the reaction of the bid was in general.Sophisticated investors Tang Shing Bo,Lai Wing To and Tong Man Leung have said that they have also bid for the other individual malls of The Link.
Sophisticated investors Lai Wing To said that they have entered the bid of Sham Shui Po Hei Court mall by The Link,but frankly livelihood projects in areas with limited rent increases,so the bid will be more conservative,if they successful winning the project will be for long-term rental-use.Yukie Group Chief Executive Tong Man Leung also means he have entered the bid of one of the Link mall,but did not disclose which one,only said that it will be a long-term rental-use and thinking that there are no big competition for this bid, there are many foreign funds and companies to bid for it.
Foreign funds are not allowed to bid
Market rumors are the owners have put their properties up for bid which have the right to choose the right buyer.For the avoidance of foreign funds to buy the mall then sell the property after every two to three years,will affect the livelihood and businesses,attracting residents of discontent,so all the foreign funds are not invited to be entered the bid,will only solicit the local long-term income tenants to enter the bid,so that it cause the potential buyers reduced and the bid may not be high.
The consortium which has been invited were frankly not interested,because there are a number of constraints development and more,except for the Sham Shui Po Hei Court Shopping Centre,the remaining four malls can not divested.Investors also said that there are government factors in many of the projects,also with no profit,so to give up their bids.'The king of shops'Tang Shing Bo also entered the bid of Lam Tin Hing Tin Shopping Centre which is mainly used for long term rental-use.
Projects are not attractive due to many constraints
There are a number of consortium and investors were invited to enter the bid but they felt not interested,CSI executive director Wong Chung Kong admitted that in an interview yesterday that failed to enter the bid is because the project has divested restrictions,but also refers to the relatively remote location of the malls were not in line with the company development.There are a developer more to the newspaper,the " long story " ,they blamed the projects have many constraints,such as political reasons,etc., but also the development of space is fine,making the sentiment of entering the bids have been greatly reduced.
In fact,the FTU legislators Mak Mei Kui criticism that if the Link malls successful resale,there are opportunities for further rent increases,disguised drive away the small businesses,will have the impact of the grassroots people's daily lives.
This auction of five shopping centers by The Link,including hte mall ( floor 28,313 feet and 387 parking spaces),Kwai Hing Shopping Centre (floor 24,664 feet and 277 parking spaces),Po Hei Court Shopping Centre (floor 13,686 ft.),Tung Hei Court retail and Carpark (floor 6,340 feet and 146 parking spaces) and Aberdeen luxury mall (floor 41,878 feet and 417 parking spaces).The Link refers to regular review will be made on the property portfolio,so that funds can be invested circulation.However,market participants means that The Link has been interested in the reduction of public housing assets,but change the image of The Link is to be managed the real housing estate assets,it is believed that the sale of the mall this time is to 'test the water' and gradually 'ditch light' of the original mall estates assets.
According to last year's sale results of The Link have disclosure that,this five shopping centers with a total valuation of about HKD $8.7 billion,the rate of return of about 5-6 % per annum,as Kwai Hing Mall which located in the junction of Kwai Chung Road and Wo Kwai Lane,the property area with over 24,000 square feet ,the valuation of about HKD $2.5 billion.Aberdeen luxury mall with a higher valuation, involved in more than 40,000 square feet of property area,the rental income amounted to HKD $1.88 ten million per year,valued at approximately HKD $3.10 billion.
