Date
24 September 2017
Fortune Reit is buying Laguna Plaza at Laguna City in Lam Tin. Photo: Ta Kung Pao
Fortune Reit is buying Laguna Plaza at Laguna City in Lam Tin. Photo: Ta Kung Pao

Fortune Reit buys second mall at Laguna City

Fortune Real Estate Investment Trust (00778.HK) has signed its first property deal with an independent party, buying Laguna Plaza for HK$1.92 billion (US$247.7 million), the Hong Kong Economic Journal reported Tuesday.

The price Fortune Reit paid for the shopping mall at Laguna City in Lam Tin was 7.76 percent less than its appraised value of HK$2.08 billion, falling short of market expectations, the report said.

The deal, however, remains the largest mall acquisition this year. 

Fortune Reit is controlled by tycoon Li Ka-shing’s real estate flagship, Cheung Kong Holdings Ltd. (00001.HK). It is buying the mall from CLSA Capital Partners, which purchased the property in August 2012 at HK$1.5 billion from Hang Lung Properties Ltd. (00101.HK).

The latest transaction puts paid to rumors that New World Development Co. Ltd. (00017.HK) was close to making a deal for Laguna Plaza.

Fortune Reit said the purchase will bring synergy to another mall it owns nearby, Centre de Laguna, and help enhance economies of scale in tenant portfolios that will drive growth potential.

–Contact us at [email protected]

VW/JP/FL

Freelance journalist

EJI Weekly Newsletter

Please click here to unsubscribe