China Merchants Commercial Real Estate Investment Trust (1503) signed an agreement to acquire a student accommodation project in Hung Hom for HK$528.5 million, the company announced Monday.
The project’s appraised value was HK$569.4 million as of May 31 this year. The agreed value of HK$528.5 million, subject to the net asset value adjustment mechanism, represents a 7.2 percent discount.
The 25-storey student hostel, named “CM+U,” is situated at 470-478 Chatham Road North, a total gross floor area of 3,890 square metres, providing over 200 dormitory beds and several commercial units.
The project is an income-generating real estate upon acquisition as it was completed last year. Major leasing arrangements for the new academic year have been completed.
Situated in Hung Hom, the accommodation is adjacent to multiple institutions of higher learning including Hong Kong Metropolitan University and The Hong Kong Polytechnic University; and boasts an extensive transportation network for convenient travel.
