Temasek-owned Mapletree to buy Swire Pacific mall for USD2.4 billion
Temasek Holdings’ property firm Mapletree Investments is acquiring Hong Kong shopping complex Festival Walk in a deal worth HKD18.8 billion (USD 2.4 billion). According to a statement made to the Hong Kong Stock Exchange, Mapletree has already paid a deposit of HKD1.8 billion (USD230.97 million), and the sale will be finalized on August 18.
The 1.2 million square foot seven-storey mall has a book value of HKD17.2 billion as of December 2010, representing a profit of HKD1.6 billion from the deal. The fully- occupied complex also houses top-tier office spaces.
In a statement made to the HKEx, Mapletree chief executive officer Hiew Yoon Khong said that what makes the asset particularly attractive “is that the rental income has increased consistently year-on-year since inception,” adding that they are confident this trend will continue in the future. The property, which is situated in Kowloon Tong along the train line that connects to mainland China via Shenzhen, takes advantage of the rising number of Chinese tourists visiting Hong Kong to shop.
Festival Walk is going to be a seed asset for a planned portfolio of commercial properties Mapletree intends to build over the next two to three years. Swire also owns popular complexes Island East, Cityplaza, and Pacific Place.