The property is known by its address, 410 Kwun Tong Rd. It is located in the eastern part of Kowloon district--an area that has evolved over the past decade from an industrial area to a mixed-use district. Yeap Soon Ann, a director with fund manager IP Real Estate Asset Management, says 410 Kwun Tong will benefit from the area's continued rejuvenation, which includes the adjacent, 1.3-million-sf Millennium City 5 office and retail building. "It has a strategic location within the area, being directly in the flow of pedestrian traffic towards Millennium City," he says. "Further, as we plan to make improvements to the building, we should be able to capture positive rent revisions--to levels more in line with the market--when leases come up for renewal next year."
An industry source in Singapore tells GlobeSt.com that all of the major tenant leases will come up for renewal in the 12 to 24 months. The current gross asking rent at 410 Kwun Tong is $2.57 per sf per month. One of the improvements will be a renovated office lobby area, according to the source. Currently known by its address, the building also will be given a name as part of its makeover.
The IP Property Fund is a private fund managed from Singapore by ING Real Estate and CapitaLand. The fund holds office, retail, and residential units in Singapore, Hong Kong, Malaysia and Thailand.
The property at 410 Kwun Tong Rd. is the fund's third acquisition in Hong Kong and its second investment in the office sector. In 2004, it purchased one whole floor of Harcourt House for lease.
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