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K11 ART MALL, located at No. 18 Hanoi Road in Tsim Sha Tsui, is a well-curated shopping destination integrating culture and art. The mall features flagship stores offering trendy clothing, leather goods, and cosmetics, along with stalls and spaces for charity groups and university students selling unique handicrafts and creative products, contributing to its vibrant atmosphere.
Approximately 340,000 Square Feet with Expected Returns Over 5%
According to sources, China Resources Longdi has bid around NT$9 billion for the mall. With a project area of 335,900 square feet, this equates to an average price of about NT$26,800 per square foot. If the mall’s monthly rent exceeds NT$40 million, the return is anticipated to be more than 5%.
“Sing Tao” reached out to China Resources Longdi for comment but received no response by the deadline. Market observers suggest that China Resources Longdi is optimistic about the Hong Kong market and, due to its strong position, is one of the few major players actively seeking shopping mall acquisitions.
The K11 mall spans seven floors, including two basement levels and five ground floors, with additional parking spaces on two levels. The shopping areas cover floors from B2 to L4, with vehicle access and parking located on B3 and B4. The mall officially opened in December 2009.
Negotiations for Swire’s Property
In addition to K11, China Resources Longdi is also in talks to acquire a Swire property located east of Cityplaza. This property, comprising about 100,000 square feet across the ground and first floors, is considered non-core by Swire. The purchase is expected to yield a return of over 6%. Swire Properties declined to comment on market rumors when contacted.
Moreover, last month Savills reported that China Resources Longdi purchased the retail podium and parking lot at No. 29 Tong Yin Street, Tseung Kwan O, for approximately NT$540 million. Previously owned by Lai Sun and Imperial, the property spans about 102,500 square feet and includes 154 parking spaces. Additionally, China Resources Longdi acquired the KF88 Kwai Fong Hui retail store for NT$310 million in January, with a current occupancy rate close to 90% and a rental return rate of 6%.
In March of this year, New World announced the sale of its 100% stake in the Discovery Park shopping mall in Tsuen Wan, including parking spaces, to Chinachem Group for NT$4.02 billion. This deal marks the largest single shopping mall transaction in Hong Kong since 2017. Through this sale, New World generated over 1.2 billion yuan, achieving half of its goal to sell 8 billion yuan in non-core assets for the fiscal year. This move is expected to aid in reducing the company’s debt.
After New World listed the mall for sale in mid-2022, the main contenders were China Resources Longdi and Chinachem. Ultimately, Chinachem won the bid with the higher offer.
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