In a surprising turn of events, Schroders, the London-based fund manager, has officially launched a sale campaign for the Worfu mall in North Point, Hong Kong, at an enticing asking price of HK$1.6 billion (approximately $210 million). This marks Schroders' third property offering in the bustling city within just four months, reflecting the company's aggressive real estate strategy in one of the world's most dynamic markets.

Schroders originally teamed up with the UK real estate firm Chelsfield back in late 2017 to acquire the building, which was then known as Provident Square. The property was purchased from the HKEX-listed Fortune REIT for HK$2 billion. Since acquiring the site, renovations took place between 2019 and 2021, and now the owners are marketing the community mall "as-is" with existing tenancies, spearheaded by the renowned real estate advisory firm CBRE.

This retail gem boasts an impressive 210,000 square feet (19,510 square meters) of gross floor area and accommodates 98 shops, catering primarily to the area's middle-class residents. The mall is strategically positioned within one of Hong Kong Island's most affluent catchment areas, which is a critical factor for its attractiveness, according to Barry Chung, CBRE Hong Kong's head of client care.

Chung emphasized, “Worfu is surrounded by a mature estate with a higher-than-average domestic household size which fuels demand. The purchasing power in the North Point area is immense, complemented by a significant working population and a spirited student demographic.”

A Look Into the Property's History

Fortune REIT first acquired the 1982-vintage Worfu mall in 2012 for HK$650 million. Fast forward five years, and they sold the property to Schroders, marking a strategic divestment that aligned perfectly with the UK fund’s growth ambitions in Hong Kong’s retail sector. It's worth noting that this is not the first time Pamfleet, which was Schroders' operating name in Hong Kong at the time, has bought from Fortune REIT; they previously acquired Nob Hill Square in 2015.

The current tender exercise, which reflects a price of approximately HK$7,619 ($979) per square foot, is set to close on February 21. With attractive new infrastructure developments—like a fresh harbourfront boardwalk set to debut this weekend—expectations are high for a successful sale.

Chung expressed optimism about the property’s potential: “We look forward to the public tender launch of this project as an opportunity to capitalize on the substantial upside stemming from the recent developments in the surrounding malls.”

More Offerings from Schroders

In addition to Worfu mall, Schroders has recently put the third floor of Harbourfront Landmark—a mixed-use complex located in Kowloon’s Hung Hom area—up for private sale. This space, measuring 18,520 square feet, was initially estimated at HK$163 million but is now valued at HK$150 million (about $19.3 million), showcasing a significant markdown and further highlighting the fund manager's strategic asset management approach.

Don’t Miss This Opportunity!

With Schroders keen on offloading these valuable assets amidst a reshaping retail landscape in Hong Kong, investors and keen buyers have a window of opportunity to take part in what could be a game-changing transaction. Keep your eyes peeled as February 21 approaches—this sale could be the key to unlocking exceptional value in a thriving real estate market!