Singapore-listed Hong Kong focused retail real estate investment trust Fortune REIT (SGX:F25U) has completed the acquisition of Laguna Plaza, the REIT said on 12 January.
Laguna Plaza is a private housing estate retail property located in Kowloon with 163,203 square feet of gross rentable area. Fortune REIT first announced plans to acquire the property for HKD1.9 billion (SGD324.4 million) in December 2014.
Laguna Plaza has a committed occupancy rate of 96.7% 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.
Fortune REIT announced in January 2015 that it has established new banking facilities for an amount of up to HKD1.6 billion through two wholly-owned subsidiaries to partly fund Laguna Plaza’s acquisition.
With the induction, Fortune REIT now has a portfolio of 18 private housing estate retail properties in Hong Kong, comprising of 3.27 million square feet of retail space and 2,756 car parking spaces.
Units of Fortune REIT are currently listed on the Singapore Exchange at HKD7.91.