In investment news from Singapore, Temasek Holdings has purchased a gigantic shopping mall in Kowloon for a reported $2.9 bilion. The investment giant, a unit of Mapletree Investments, bought Festival Walk from Hong Kong's Swire Pacific. The deal is, so far, the 3rd biggest deal in the Asia Pacific region this year.
According to Mapletree's press, this is just the first in a series of acquisitions that will build a massive Mapletree portfolio of commercial properties over the next couple of years.
Mapletree CEO, Hiew Yoon Khong, had this to say about the deal:
“This acquisition is a milestone as we have secured a good size and high quality asset in our first retail project in Hong Kong. Given that Festival Walk is 100% occupied with good quality tenants, upon completion, it will immediately provide good and stable returns to us and our capital partners. What is especially attractive about this asset is that the rental income has increased consistently year on year since inception reflecting the quality of the mall. We are very confident that this trend will continue into the future. Additionally, we will identify asset enhancements opportunities that draw on the inherent merits of the mall to further increase its value. As part of the business continuity for Festival Walk as well as to build up our breadth and depth in retail skills, we are pleased to welcome the experienced and strong mall management team into the Mapletree Group.”
Festival Walk is a seven story mega-mall centrally located within Kowloon Tong, which is ideally located at a key transportation hub between Hong Kong and the mainland of China. With almost 600,000 square feet of retail space to let, the mall already plays host to key International brands such as; Toys” R” Us, Marc by Marc Jacobs, Escada, Chanel, Anteprima, Marks and Spencer and AMC cineplex, among the many others. When launched in 1998, the mall was the largest in Hong Kong.
For a more in depth look at Mapletree, we suggest the reader take a look at Mapletree Commercial Trust here. Alternatively, the reader can visit Mapletree Singapore here, or visit Temasek Holdings at their website. The media contact for Temasek is Serena Khoo, who can be reached via phone: +65 6828 6509, or email: [email protected]