Link REIT has won the tender to acquire a parcel of non-office commercial-use land at a location off Anderson Road, Kwun Tong for HKD766 million.
The land has a site area of approximately 5,880 square metres.
The appraised value of the land was HKD840 million as at 12 August 2022, according to an independently prepared valuation report.
As such, the land premium represents a discount of approximately 8.8% to the appraised value.
Link REIT intends to develop the land into a non-office commercial development with car parks.
It will include retail facilities and a fresh market, said the REIT.
The maximum permitted gross floor area of the development is 12,936 square metres.
Link REIT will coordinate and appoint contractors to implement the construction, fitting-out and completion of the development.
It is anticipated that the development will be completed and made fit for occupation well in advance of 30 June 2028, said the REIT.
Link REIT was last done on the HKSE at HKD60.80, which presently implies a distribution yield of 5.26% according to data on the Hong Kong REITs table.