Guan Jun: The first two months of sales of Langham Place

In the Langham Place shopping mall of Champion REIT (02778), the tenant sales rose 17.6% last year. Chief Executive Wang Jiaqi revealed that there is still a single-digit increase in retail sales in the first two months of this year. However, the annual performance is difficult and last year’s performance. Merchant portfolios and promotion, etc., still have growth on the basis of high base last year.

Central Commercial Building “no place” rent is hard to fall

Wang Jiaqi said that the US economic recession worries and the interest rate hike in Hong Kong constitute potential risks this year. The Sino-US trade war may also affect the desire of tourists from the coastal areas of the Mainland to come to Hong Kong for consumption. Although the high-speed rail and the Hong Kong-Zhuhai-Macau Bridge were opened to traffic last year, Wang Jiaqi said that the relevant infrastructure has led to a significant increase in the number of passengers. However, per capita consumption has not risen and fallen. At present, Langham Place mainly introduces the “Hong Kong First” specialty merchants and flash shops. Waiting for people to flow, hope to keep customers fresh.

In terms of office buildings, the rental income of No. 3 Garden Road, Guanjun, increased by 13% year-on-year, and the occupancy rate reached a high of 99.1%. Wang Jiaqi said that 99% of the occupancy rate is “too full” for the company. Some tenants want to expand their “no position”. Chinese companies still have strong demand, and the supply of office buildings in Central is in short supply. I don’t think there is any rent in Central this year. The incentives will fall.

In recent years, the rise in rents in Central has led many companies to choose to “go to Centralization”. Wang Jiaqi believes that the relocation of enterprises to other regions can save costs, but Central has always been the core financial sector, especially for financial services companies, even in the case of relocation, there are still Shared workspace and small office needs.

Wang Jiaqi is optimistic about the development of Dawan District. He said that there are targets for acquisition in the region, but he bluntly said that “there are not many opportunities”. Because most of the land is used for corporate construction headquarters or for personal use, it is necessary to “get slowly.” She continued to point out that the mainland retail market is more affected by e-commerce. It is more inclined to acquire office buildings in the core areas of first-tier cities. The yields of community shopping malls or industrial properties are higher, but they are not in line with the current asset quality. “I don’t necessarily want to buy.” .