HONG KONG, CHINA -- 11 October 2018 - Henderson Sunlight Asset Management Limited (the "Manager") is pleased to announce the operational statistics of Sunlight REIT for the first quarter of the financial year 2018/19.

 

At 30 September 2018, the overall portfolio occupancy of Sunlight REIT was 97.7% (30 June 2018: 98.2%). The slight decline was mainly attributable to the higher vacancy recorded at Bonham Trade Centre ("BTC") in preparation for the upcoming asset enhancement initiative.

 

Passing rent of the overall portfolio was HK$47.1 per sq. ft. at 30 September 2018, representing a quarterly increase of 1.3%. Office and retail rental reversions, calculated on the basis of change in effective rent of the leases that have been renewed and commenced during the quarter, were 9.6% and 9.4% respectively.

 

During the quarter, Sunlight Tower continued to benefit from the favourable leasing environment and brisk demand for decentralized office spaces, as illustrated by its occupancy rate of 99.5% and a rental reversion of 12.2%.

 

On the retail front, solid consumer sentiment supported the performances of Sheung Shui Centre Shopping Arcade and Metro City Phase I Property. Both shopping malls were almost fully occupied and achieved rental reversions of 8.6% and 11.4% respectively.

 

In respect of the Grade B office portfolio, the enhancement plan of BTC which is in the final planning stage, will involve the renovation (and vacating) of approximately 28% of its gross rentable area. Meanwhile, Fung Shun Commercial Building maintained full occupancy during the quarter under review. 

 

However, its vacancy rate is expected to rise transiently given that the existing (sole) office tenant will vacate more than half of the occupied area.  As disclosed in Sunlight REIT's 2017/18 annual report, the Manager will capture this opportunity to execute minor facility upgrade and to diversify the trade profile of the property. (MOR/*).