Singapore-based Mapletree Investments has announced it is set to purchase the Festival Walk mall in Hong Kong for HK$18.8 billion, or roughly US$2.9 billion.
The property has approximatley 580,000 square feet of leasable propetty, and attrached nearly 40 million shoppers in 2010 alone. It also includes 220,000-square-feet of Grade-A office space.
"What is especially attractive about this asset is that the rental income has increased consistently year on year since inception reflecting the quality of the mall. We are very confident that this trend will continue into the future," said Mapletree Group Chief Executive Officer Mr Hiew Yoon Khong.
The purchase is the first commercial purchase in Hong Kong for the firm, which hopes to build a portfolio around it over the next few years. The firm says its total assets under management will well to S$17.8 billion.
The many tenants of the mall's 7 retail floors include standards such as Toys "R" Us, Marc by Marc Jacobs and AMC Cinemas.