24/11/2017-9

Ka Wah Shanghai three service apartment rental income over 200 million

Ka Wah International (00173) in recent years, the positive development of the mainland real estate business, and portfolio investment in the expansion of serviced apartments. The “Stanford Residences" brand serviced apartment, launched in 2015, has so far reached a total of 3 projects in Shanghai involving more than 350 units. It is expected that the annual rental income will be about 180 million yuan to 200 million yuan (equivalent to 2.12 yuan Million to 236 million Hong Kong dollars).

Three projects currently being offered by Shang Zhen in Shanghai, including Shang Zhen Jing An, Shang Zhen Xu Hui, and Shang Zhen Jinqiao, which began leasing in September this year, provided more than 350 units in total.

Li Zhixian, an associate director of K. Wah International Hotel and Apartment Management, said that the group is not only a developer but also a manager and has the advantage of developing serviced apartments. He disclosed that Shang Zhen Jing An and Shang Zhen Xu Hui launched a total of 113 renters and have leased more than 90% so far. Each group has an average monthly rent of about 50,000 to 60,000 yuan. Tenants, other than staff from overseas companies and local customers, also have consular staff , The largest hand tenant to rent 4 to 5 units, involving more than 200,000 yuan monthly rent, rent renewal units recently 3% to 5% increase. He expected that after leasing out more than 350 units in all three projects, the annual rental income will be about $ 180 million to $ 200 million.

Shang Zhen brand attack overseas and Hong Kong

Mr Lee said the Shang Zhen brand is rooted in Shanghai and will not only develop in Shanghai in the future, but also expand its brand business in Hong Kong and overseas. It will not rule out cooperation with other consortia in the provision of serviced apartments. However, the precondition of cooperation is that concepts must be consistent.

In his opinion, Xi Jinping, chairman of the State Council, recently put forward the argument that “the house is used for housing" and that the leasing market will become more mature and stable in the long run.

According to Deng Yu-tsung, Vice-President of Ka Wah International Business Development Planning, under the restriction order, many inter-provincial entrepreneurs are unable to enter the market in Shanghai and have demand for serviced apartments. Coupled with the policy of “renting only and not selling" The Group will continue to look for more land development serviced apartments.

In addition, the retail segment of Shanghai Ka Wah Center was relocated. Tang Yu-tsung said the retail segment has been renovated for about $ 5 million to introduce “J SENSES" and “H SENSES" as major mid-market customers and " Palace “series, such as Jia Lane Palace Lane, etc., to cater to different customer base. In the future, the commercial parts of several development projects will be completed one after another, and the total investment property floor area will continue to increase, including the new office building in Suhe Bay, Jing’an District, Shanghai with a total gross floor area of ​​about 20,000 square meters. Upon completion, it will be a new landmark in the area.