Hong Kong developer CK Asset set to weather ‘stress test' conditions, chairman says
CK Asset Holdings , the flagship property developer of Hong Kong billionaire Li Ka-shing 's family, will weather the 'doldrums' in the city's commercial leasing market amid global economic uncertainties, according to chairman Victor Li Tzar-kuoi.
'No industry in this world is always well-performing, and demand for Hong Kong's retail and office properties is indeed slow at the moment,' the eldest son of Li Ka-shing said during the company's annual general meeting on Thursday.
'With approximately 88 per cent of our profit contribution coming from projects with recurring income, we are able to withstand the challenges of the local leasing market,' Li added.
It will take time for the Hong Kong office market to emerge from its malaise, he said.
The overall occupancy rate of CK Asset's current investment property portfolio in Hong Kong was around 86 per cent, Li said.
Property agents estimated that CKC II, the developer's new tower in Admiralty, was 20 per cent occupied. Li did not provide occupancy figures for the building.
'We hope that when the market improves, CKC II's leasing performance will be better and better,' he said.
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