ISSUE 014 季刊 | Winter 2014 Edition
善用地利  提升社區生活質素
Achieving Synergy 
Enriching People's Lives







"Location, location, location", the oft-quoted maxim of the real estate industry, highlights the importance of locational advantage for the property business. As far as the retail sector is concerned, a property's location determines the community and customer base it serves, with its future growth dependent on such factors as the surrounding neighbourhood's demography, facilities and infrastructural development. As one of our business strategies to building on our locational advantages, we have expanded our customer touch points by acquiring shopping malls in Tseung Kwan O and Wong Tai Sin districts.

The Link's retail properties are mostly located in populous residential communities where they serve the everyday needs of nearby residents. In the past few years, we have actively enhanced the trade mix, physical structure and services of our properties, and we have introduced various shopper-friendly features to enable the properties to achieve healthy growth.

In addition, we have worked to optimise trade mix and we have brought in new eateries. As our experience has shown, successful improvement of a shopping mall can directly benefit quality of life in the community. As we acquire more properties in line with our investment strategy, we hope to extend our management experience to benefit more communities.

Lions Rise Mall, which we acquired in August 2014, underscores the importance of locational advantage to create synergy effects. This property is located in Wong Tai Sin, which is a district we have been serving for years, and it is within walking distance from two major shopping centres in our portfolio. With our knowledge of the local community and our extensive retailer network, we will not only be able to enhance trade mix to more closely match shoppers' needs, but we can also reduce overlap by planning trade mix from a cluster's point of view. Economies of scale will also be generated in areas like resource deployment and promotional programmes. The property's proximity to a number of upcoming private and public residential developments offers opportunities to further expand the customer base in the future.

Asset disposal is another element of the capital recycling process. The Link has sold nine retail properties in recent months that possessed few synergistic opportunities to other investors, with a view of leveraging different market forces to raise the service standards and shopping environment at those properties. Property acquisition and disposal both serve to produce synergies and generate greater value for the community as we remix our investment portfolio.

George Hongchoy
Chief Executive Officer │ November 2014