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MEDIA CENTRE
(Hong Kong, July 18, 2010) Emperor International Holdings Limited (“Emperor International” or “the Group”) (Stock code: 163) today announced that its wholly owned subsidiary had entered into an agreement with Kingdom Power for the acquisition of a property at No. 22-24, Russell Street (the property) at a price of HKD 1,100,000,000.
The property occupies a site area of approximately 2,337 square feet, with an aggregate gross floor area of approximately 9,400 square feet. Combining with the Group’s existing property at G/F and 2/F, No. 20 Russell Street, it makes possible a triplet ground-floor retail space of about 3,200 square feet (areas of No. 20 and No. 22-24 respectively 1,000 and 2,200 square feet), seizing the best out of the synergy it can make with the Group’s current land bank. The triplet shop space is the right size for international brands thinking of building their flagship stores in Hong Kong.
Considering that local real estate market remains robust, the newly acquired property is expected to reap a rental return of 2.1% and further enhance the Group’s investment portfolio and profitability as well as, in particular, the appreciation potential of its adjacent property at No. 22-24 Russell Street.
Managing Director Ms. Vanessa Fan said, “The Group owns multiple retail spaces on Russell Street in Causeway Bay where, according to latest research findings, retail rents have risen to become the third highest in the world just after Avenue des Champs-Élysées in Paris and Fifth Avenue in New York. Being the second largest landlord of ground-floor retail spaces of the shopping street, we expect rents will keep going up due to China’s continuous economic growth. The acquisition will optimize our investment portfolio and provide a new stream of stable rental income.”
