ARA Asset Management (Fortune) Limited, the manager of Li Ka-shing controlled Fortune REIT has now closed on its HK$1.9 billion ($245 million) acquisition of the Laguna Plaza residential retail complex in Hong Kong, according to a recent statement from the company.
The acquisition of the 163,203 square foot (15,100 square metre) private housing estate retail complex in eastern Kowloon’s Kwun Tong neighborhood was first announced by the Singapore-listed Hong Kong focused retail real estate investment trust in December 2014.
Laguna Plaza has a committed occupancy rate of 96.7 percent as of 31 October 2014 and said to have an immediate catchment area of 8,000 residential units. The property is estimated to have a yield of 4.3% at its purchase price.
With the acquisition of Laguna Plaza, Fortune REIT now has a portfolio of 18 retail projects at housing estates in Hong Kong, totalling 304,000 square metres (3.27 million square feet) of shopping space.
Located in Kowloon East with an immediate large residential catchment of 8,000 units in Laguna City and another 4,000 units in neighbouring Sceneway Garden, Fortune REIT’s management expects the newly renovated Laguna Plaza to create synergies with Fortune REIT’s nearby Centre de Laguna.
Mr Anthony Ang, Chief Executive Officer of the Manager, said, “We are excited to add Laguna Plaza to our portfolio as Fortune REIT’s 18th private housing estate retail property in Hong Kong. As our first- ever acquisition from an independent third party, Fortune REIT has once again demonstrated its strength in identifying ideal targets to expand our portfolio of retail malls in Hong Kong.”