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Fortune Real Estate Investment Trust (0778) said yesterday that it has agreed to acquire the Stars of Kovan property in Singapore for S$88 million (HK$501 million).

That is a 7.4 percent discount from an independent valuation made on June 30.

The property, developed by CK Asset Holdings (1113) and completed in 2019, is a mixed-use project involving flats, 36 shop and 80 car-park spaces.

News of the deal came as Centaline (Commercial) said retail and industrial property transactions were weak last month, with the 337 deals representing a decline of about 24 percent, a new low for the year.

It believes the retail and industrial market will continue to be quiet in the short term as the economic and political situation remains uncertain.

General manager Stanley Poon Chi-ming said turnover was about HK$4.8 billion, down 39 percent from HK$7.91 billion in June and 67 percent from HK$14.71 billion a year ago.

Retail transactions were also hit, with only about 44 deals done, representing a decline of about 23 percent, compared with June, the second lowest this year.

Turnover was about HK$401 million, sharply down 60 percent from HK$1 billion in June.

Poon said the retail and industrial property sector is going to be dragged down by a worsening of Sino-US tensions, a bearish investment market and a fast-paced entry into the interest rate hike cycle.

An artist's impression of Stars of Kovan.

Fortune REIT in S$88m CK deal