Link Asset Management has won the bid to acquire a premium commercial tower with a retail podium at 700 Nathan Road in Mong Kok, Kowloon.
It paid HK$5.91 billion (US$760 million) – about 8 per cent lower than the property’s appraised value of HK$6.4 billion.
It is the company’s first commercial property in the core commercial district of Hong Kong, which CEO George Hongchoy says demonstrates Link’s confidence in the long-term development of Hong Kong’s economy.
“As a bustling 24-hour shopping and entertainment area, Mong Kok has an excellent transport network and enjoys very high foot traffic, which makes it possible to maximise the property’s strategic location by turning it into a Ginza-style commercial tower with a retail and service theme.”
He says the weakening of the retail market has not had a significant impact on the mass market and mid-tier segments.
“Sales at Link’s shopping centres continue to record stable growth, underlying the strength of Hong Kong’s economy. Link will hold the new property long term as our vote of confidence in local consumer spending.”
It is expected the transaction will be completed next month, with enhancement work estimated to take about 18 months. Dedicated for retail, F&B and services, the property has a total gross floor area of about 26,400 sqm and comprises an eight-storey retail building (including two basement floors connecting to Mong Kok MTR Station) and a 15-storey commercial tower.