HK - Commercial Properties & REITs

[behappyalways]

華置天價125億賣總部
向恒大售美國萬通大廈　15個月套450億
http://hk.apple.nextmedia.com/financees ... 3/19370851

[winston]

As for landlords, the research house believed structural weakness would impact high-end retail landlords in the medium term.

Meanwhile, favorable factors for the office market has been priced in, so the only bright spot that it sees is suburban retail.

The top picks in the landlord sector involved LINK REIT (00823.HK), HANG LUNG PPT (00101.HK), WHARF HOLDINGS (00004.HK) and SWIREPROPERTIES (01972.HK).

Source: AAstocks.com

[behappyalways]

舖位投資者轉攻旅遊巴
http://hk.apple.nextmedia.com/financees ... 1447750300

[winston]

Healthy appetites good for certain landlords

Rental activity involving food and beverage outlets has reached a three-year high to buck the trend of falling interest in shops and less returns for landlords in prime areas, Jones Lang LaSalle has found.

Terence Chan Yiu-fung, head of retail for the services and investment management company, said rental deals related to the food and beverage industry accounted for about 50 percent of leases the firm handled.

Chan expects rents of street-level shops in prime areas to be down 24 percent this year, with a decline of 5-10 percent in 2016. But he thinks rents for outlets in malls will be stable next year with a maximum rise of 5 percent.

Still, he added, the current climate of reduced rents benefit F&B businesses, which are generally less able to bear high rents.

Also checking the state of business, associate director for retailing Michelle Chiu Hoi-yu said some high-end retailers broke leases or sought rent cuts.

She also said F&B has been moving along well, with some chains keen to expand.

An Italian restaurant has set up in 6,000 square feet in Central's California Tower, while a bar chain plans a flagship operation in a 7,440-sq-ft outlet.

The total retail volume in the SAR has fallen 2.7 percent this year, said Mavis Hui Ming-wai, a retail analyst at DBS Vickers (Hong Kong), and she expects a further drop of 3 percent next year. She sees rents of street- level shops set to tumble at least 30 percent.

As for catering service providers, business has been disappointing and is not likely to improve next year, China F&B analyst Alice Hui Sze-man said.

Source: The Standard HK

[winston]

Street Shops vs Office

Heading south are the rents of prime street shops, which Savills expects to slide a further 15 percent next year after a recent slump of up to 30 percent.

The office sector, which has seen an 11 percent rise this year, gives the property market a brighter outlook. An increase of up to 10 percent is expected in central grade A offices as more mainland companies in the financial field drive up demand.

UK-based real estate developer Grosvenor agrees that local offices draw an optimistic picture. "There is no new supply until 2017," said chief executive Benjamin Cha Yiu-chung, "and it doesn't face downward pressure like the residential market."

Lease renewals of its offices in Quarry Bay had increased up to 10 percent in the past two years.

The property investor plans to put US$1.35 billion (HK$10.53 billion) into Asia Pacific real estate in the next three to five years, and the target cities for investment remain as Tokyo, Shanghai and Hong Kong.

Its luxury project at Jardine's Lookout, a joint venture with ASI and CSI, will be completed in 2017 and will provide 18 apartments sized above 2,800 sq ft.

Source: The Standard

[winston]

Stock/ Investment Rating/ Target Price (HK$)/ NAV Discount


Landlords:
HANG LUNG PPT (00101.HK)/ Outperform/ 20.6/ -22%
WHARF HOLDINGS (00004.HK)/ Outperform/ 47.8/ -34%
SWIREPROPERTIES (01972.HK)/ Outperform/ 25.3/ -20%
SWIRE PACIFIC A (00019.HK)/ Neutral/ 90.1/ -16%
HYSAN DEV (00014.HK)/ Outperform/ 36.1/ -24%
GREAT EAGLE H (00041.HK)/ Neutral/ 25.2/ -56%

REITs:
LINK REIT (00823.HK)/ Outperform/ 49.5/ -7%
YUEXIU REIT (00405.HK)/ Outperform/ 4.7/ -22%
CHAMPION REIT (02778.HK)/ Outperform/ 4.32/ -16%
SUNLIGHT REIT (00435.HK)/ Neutral/ 3.66/ -7%
PROSPERITY REIT (00808.HK)/ Neutral/ 2.66/ 0%

Source: Macquarie

[winston]

Hong Kong office sector to become bright spot in the city's property sector next year

Hong Kong's office market could next year prove to be the exception in an otherwise difficult time for the local real estate market

Source: South China Morning Post

[winston]

The following is the latest target prices and investment ratings for Hong Kong landlords by Credit Suisse:

Landlords/ REITs
GREAT EAGLE H (00041.HK)/ Underperform/ 21->21.3
HANG LUNG PPT (00101.HK)/ Neutral/ 24.7->17.7
HYSAN DEV (00014.HK)/ Underperform->Neutral/ 29.6->34.7
SWIREPROPERTIES (01972.HK)/ Neutral/ 25.5->24.7
WHARF HOLDINGS (00004.HK)/ Neutral->Underperform/ 48.3->38.4
CHAMPION REIT (02778.HK)/ Outperform/ 5.2->4.7
LINK REIT (00823.HK)/ Underperform/ 41.3->42.5

Source: AAstocks.com

[winston]

<Research Report>M Stanley's Latest Ratings, TPs to HK Real Estate Stocks (Table)

Morgan Stanley, in its report, updated its investment ratings and target prices on Hong Kong real estate stocks:

Stock / Investment Rating / Target Price (HK$)


Landlords:
SWIREPROPERTIES (01972.HK) / Equalweight / 21
HANG LUNG PPT (00101.HK) / Equalweight / 16
WHARF HOLDINGS (00004.HK) / Overweight / 43
HYSAN DEV (00014.HK) / Underweight / 27
HOPEWELL HOLD (00054.HK) / Underweight / 22

REITs:
LINK REIT (00823.HK) / Overweight / 53
FORTUNE REIT (00778.HK) / Overweight / 8.7
CHAMPION REIT (02778.HK) / Equalweight / 4.3

Source: AAStocks Financial News

[winston]

SHKP sees gold as luxury retailers move out of Hong Kong’s tourist belt

by Sandy Li

Source: SCMP

http://www.scmp.com/property/article/19 ... urist-belt