(June 23rd, 2022) The Wan Tau Tong Square at Tai Po was sold for HKD1.36 billion in June. This is the biggest retail deal so far in 2022. This property has a total GFA of 77,000 sf with a net GFA of 54,500 sf and comes with 414 car parking spaces. It is a 31 years old shopping centre which is mainly to cater for the local community needs. It has a 100% occupancy rate and is estimated to collect a monthly rental of HKD4 million, representing an annual return of 3.5% on the purchase price. The buyer is CR Enterprise which is a subsidiary of China Resources Group while the seller, Mr Lin Tsz Fung, is the chairman of the Hong Kong listed snack shop, Best Mart 360. Mr Lin purchased this mall from the Link REIT for HKD810 million in 2016 and made a handsome profit of HKD5.5 billion over 6 years, an increase of 68% in value. The investment yield of this mall seems attractive and even at this new purchase price, the new owner can still enjoy a 3.5% return per annum. Rumours in the market is that Mr Lin is now hunting for industrial properties as his next property investment target.
