Leading diversified professional services and investment management company Colliers (NASDAQ and TSX : CIGI) is pleased to announce it has been appointed as joint sole agent by Twin City Holdings Ltd to manage the commercial disposition of their newly refurbished retail space, the Vertex Arcade.

This high-specification retail podium is split over three floors, offers close to 45,000 sq. ft. of gross commercial space, along with its naming rights and commercial car park spaces, has a tender closing date of 12:00 noon, 18 November 2022.

The Vertex is located in the heart of West Kowloon on 29 Tonkin Street in Cheung Sha Wan. It offers exceptional connectivity by a range of public transportation networks and is just 10 minutes to West Kowloon MTR Station and 23 minutes to Central, serving almost 750,000 residents in the vicinity.

The recent completion of private residential projects and the rejuvenation of surrounding amenities has transformed the landscape of West Kowloon. With more residential and commercial projects in the pipeline and numerous schools catering to all ages, West Kowloon has attracted affluent residents and created a vibrant young population that underpins the demand for high-quality retail space.

Throughout the pandemic, community shopping malls have shown resilience with growth in size and strong revenue generation. This is demonstrated by the 2021-22 performance of Link REIT’s retail portfolio[1] that operated at 98% occupancy, 4.8% rental growth rate upon reversion and 98% rental collection. This case study validates the strength of the current community mall sector and provides confidence for both buyers and sellers.

CK Lau, Managing Director | Hong Kong of Colliers, said: “With the recently revealed '0+3' entry scheme in Hong Kong, the market hopes for some stimulus and for the Government to further relax travel restrictions, triggering retail sentiment. One thing that we have seen on-the-ground has been the uptick in leasing enquiries as some retailers are actively planning for expansion. Regardless of tourism revenue, local consumption has been and is still the foundation of retail sales that drives the demand for shop leasing.”

“Adjacent to Cheung Sha Wan MTR Station, the Vertex Arcade is in close proximity to numerous newly completed private residential developments, ensuring ample foot traffic. It is expected that the asset will be well received by the market and highly sought after by investors,” added Lau.

Dominic Chung, Executive Director, Capital Markets & Investment Services | Asia, added: “Hong Kong’s retail sector has weathered a difficult economic climate. However, with a change in governance from the Chief Executive, the potential for borders to re-open this year, we see 2023 as a favourable market for the retail sector. To have the opportunity to purchase an asset like the Vertex Arcade now, will put the purchaser in a strong position to seek good returns in line with market recovery.”

“There is a distinct lack of lifestyle malls in Cheung Sha Wan, Lai Chi Kok and Sham Shui Po. The Vertex Arcade is a brand new, one-of-a-kind concept in West Kowloon and will offer the owner the opportunity to attract a range of leading brands that will have limited, to no competition in the market. Poised with the opening of the borders, and it’s unique selling point, the buyer will have a very competitive product,” added Chung.

Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said: "The shopping arcade is one of the largest shopping malls in the area with around 30 shops sized approximately between 300 and 1,600 sq ft (net area) with well-planned circulation, while most of other retail podiums in the district range between 10,000 to 20,000 sq ft only. It also has the flexibility for the buyer to lease it to a single anchor tenant or for self-use. Located in core Cheung Sha Wan which is one of the most densely populated areas in Hong Kong, , the project is also situated within the vicinity of over 30 primary and secondary schools, , over 13 completed residential redevelopment projects by the URA over the past decade and at least 10 more projects in the pipeline for redevelopment, hence it is able and will continue to draw on a new catchment of affluent young families on top of the existing dense residential developments."

Peter Yuen, Managing Director, Investment of Savills Hong Kong commented “We are glad to be one of the sole agents for the tender sale of The Vertex Arcade, at the same time we are also the property management company of the shopping mall. A lot of rental enquiries from potential tenants are received since the completion of the property such as supermarkets, banks, coffee shops, fast food chains and sports brand stores, we believe the shopping mall will bring a rich entertainment and fashion experience to the neighborhood.”

Peter continued “Retail-tainment market is expanding which makes the retail rent stabilized. Larger retail spaces are being subdivided and have become multi-tenanted to gain the maximum return. In addition, with the further relaxation of social distance measures, local consumption will be benefited. Many experienced investors are re-entering the market in search of quality properties for investment.”

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below. 

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