Occupancy rate of Hopewell investment properties climbs to 94-96%

Thanks to government's development of Kowloon East.

Most of Hopewell's investment properties registered an occupancy rate increase to 94-96% and the average rental rate increased in FY14.

According to a research note from Nomura, these benefited from de-centralisation and efforts by the government to speed up development of Kowloon East.

Meanwhile, the spot rental rate for two of its key investment properties (Hopewell Centre and KITEC) has been on an increasing trend of late.

Management targets the average rental rate would continue to see single- to double-digit growth in FY15F, with Hopewell Centre office’s rental rates likely to enjoy a 6% y-y increase in FY15F to HKD40/sqft vs. +19% in FY14.

As per management, KITEC office’s rental rate may increase by +15% y-y in FY15F to HKD15/sqft vs. +20% in FY14.

Hopewell is principally engaged in the fields of investment in infrastructure projects, property development and investment, property management, hotel investment and management.

Here's more from Nomura:

Broadwood Twelve. As of 14 Aug 2014, 59 out of 76 units were sold at an average selling price of HKD34,000/sqft. Another nine unsold units were leased out at average monthly rental rate of HKD67/sqft.

Hopewell New Town in Guangzhou. Despite an unfavourable property market in China, Hopewell still managed to register an average selling price increase of 4% to an average CNY9,200/sqm for the period 1 July 13 to 14 Aug 2014 compared with FY13.

Hopewell Centre II is expected to complete construction in CY2018F and start operations in CY2019F.

200 Quenen’s Road East Project’s construction is expected to be complete in CY2015F. As of 14 Aug 2014, 93% (or 1,185 units) of the total residential units were sold at an average selling price of HKD21,200/sqft. The remaining 90 units, with a total GFA of 83,000 sqft, are estimated to be sold at HK$30,000/sqft, as per management. The Avenue Walk with a retail GFA of 86,000 sqft is targeted for a grand opening in 2H2015.

Construction work on the connection between Avenue Walk to MTR is expected to be completed in CY2017, and the connection between Avenue Walk to Hopewell Centre will complete construction by 2019.

Three more projects are currently being planned or are under preliminary work including 155-159 Queen’s Road East, 161-167 Queen’s Road East, and Schooner Street.