Prosperity REIT Expands Presence in Kowloon East with the Acquisition of the Chong Yip Property
Hong Kong, 22 January 2014 – ARA Asset Management (Prosperity) Limited (the "REIT Manager"), as manager of Prosperity Real Estate Investment Trust ("Prosperity REIT") [SEHK: 808], is pleased to announce that its acquisition of 9 Chong Yip Street in Kwun Tong (the “Chong Yip Property”) was successfully completed today at a purchase consideration of HK$1,010 million.
“The successful acquisition of the Chong Yip Property marks a milestone for Prosperity REIT. We are pleased that 94.0% of the independent unitholders of Prosperity REIT at the extraordinary general meeting held on 15 January 2014 voted in favour of the acquisition. The support from the unitholders attests the high level of confidence towards the REIT Manager,” said Ms. Mavis Wong, Chief Executive Officer of the REIT Manager.
The Chong Yip Property is located in a maturing business district and benefits from the growing office population within its immediate catchment area. In addition, it is well-served by public transportation systems. The acquisition increased Prosperity REIT’s portfolio size by 11.2% to 1,352,174 sq. ft..
“The addition of the Chong Yip Property strengthens Prosperity REIT’s presence in Kowloon East, a district which the Hong Kong Government has implemented strategies to develop into another central business district in Hong Kong (“CBD2”). Committed in providing stable and sustainable return to Prosperity REIT’s unitholders, we seek to maximize the value of the Chong Yip Property and have put in place an asset enhancement programme,” added Ms. Wong.
Profile of the Chong Yip Property
9 Chong Yip Street, Kwun Tong, Kowloon
Year of Completion
Gross Rentable Area (sq. ft.)
No. of Car Park Spaces
64 private car parking spaces
5 motor cycle parking spaces
4 loading/unloading spaces
Purchase Consideration (HK$ million)
Appraised Value (HK$ million)1
Hutchison Whampoa Limited
Number of Tenants1
1 As at 30 September 2013
About Prosperity REIT
Prosperity REIT [SEHK: 808] is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Prosperity REIT owns a diverse portfolio of eight high-quality properties in the decentralized business districts of Hong Kong, comprising all, or a portion of, three Grade A office buildings, two commercial buildings, two industrial/office buildings and one industrial building, with a total gross rentable area of about 1.35 million sq. ft..
Prosperity REIT is managed by ARA Asset Management (Prosperity) Limited, a wholly-owned subsidiary of ARA Asset Management Limited, which is listed on the Main Board of the Singapore Exchange Securities Trading Limited.
The information contained in this press release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Prosperity REIT in Hong Kong or any other jurisdiction.