ISSUE 013 季刊 | Autumn 2014 Edition
鞏固資產組合 拓展業務領域 
Consolidating our Portfolio while 
Expanding our Business Boundaries

鞏固資產組合 拓展業務領域
Consolidating our Portfolio while
Expanding our Business Boundaries


在零售物業需求殷切的市場大勢下,房地產投資信託基金 (「房託」) 作長線投資工具,一直為投資者帶來穩定及可觀的回報。早前,證券及期貨事務監察委員會發表了有關修訂《房地產投資信託基金守則》的諮詢總結,結果顯示有關建議獲得市場的普遍支持,因此將會作出修訂,讓房託的投資範圍擴大至投資發展中物業、從事物業發展活動,及容許房託上市證券、非上市債務證券及政府證券等金融產品。作為房託的一分子,我們相信新修訂將有助促進香港房託市場的長遠發展及鞏固其作為金融中心的地位,其中容許房託可有限度地參與地產發展,讓他們有更大的靈活性去設計、發展以及擁有物業將令香港房託市場可與國際標準看齊,為投資者帶來更佳投資潛力。





Land supply is an ongoing concern for the people of Hong Kong. According to the Hong Kong Planning Department, about two-thirds of the land in Hong Kong comprises woodlands and wetlands, a proportion that has been maintained for the past several decades. After deducting the proportion of other land uses, such as industrial, transportation and agriculture, only 0.4% of the total land area of Hong Kong can be used for commercial purposes, including malls and offices. This shortage of commercial land supply, combined with continued strong demand, has meant that the value of retail properties in Hong Kong remains high. In the demand-led market trend of retail property, real estate investment trusts ("REIT"), as a long-term investment, have generated stable returns for investors.

On 22 July 2014, the Securities and Futures Commission published the Consultation Conclusions on Amendments to the Code on Real Estate Investment Trusts ("REIT Code"), which showed that the proposals it published in January to give REITs the flexibility to invest in property development activities (including properties under development) and financial instruments (including listed securities, unlisted debt securities and government securities) were generally supported by the market. These proposals have been adapted with some modifications and amendments to reflect the consultation results. The revised code will be effective as soon as it has been gazetted.

I believe that these amendments to the REIT Code will facilitate the long-term development of Hong Kong's REIT market, since allowing REITs to participate in property development to a limited extent gives REIT managers greater flexibility in designing, developing and owning the properties. The Hong Kong REIT market will be on par with international standards, bringing more diversified investment opportunities for investors.

In May 2014, The Link disposed of four properties, which received favourable responses from the market. Some commentators had the misconception that the assets sold have low growth prospects. In fact, The Link disposed of these assets since they had less synergy with other properties in The Link's portfolio. The Link owns and manages over 100 shopping centres in Hong Kong, making it difficult for us to launch asset enhancement projects on some of the properties within a short time. In contrast, the new buyers of the four properties can put their focus on these newly purchased properties, and they can prioritise their resources in operating and managing the new shopping centres more flexibly while responding to the needs of the nearby residents.

The Link marked a significant milestone in our history during the last financial year. At the Extraordinary General Meeting held in February this year, The Link received unitholders' support to expand its geographical scope of investment strategy to outside Hong Kong. This important step raised the attention of some investors. With the continuous development of transportation network and infrastructure in Mainland China, as well as the increase in property prices in the central business districts of cities throughout Mainland China, urban residents are seeking a lower cost of living, thereby increasing the development potential of suburban districts.

The Link has achieved a lot with the support and encouragement of our stakeholders. We will continue to serve an important role in the community. Reaching the ninth year since our listing, we will continue to improve our business based on the concept of sustainable development to create and add value for our unitholders, shoppers, tenants and the community.

George Hongchoy
Chief Executive Officer │ August 2014