Jianhua invests HKD 663 million in Tsing Yi warehouse, plans to convert it into a cold storage facility to be operational in the third quarter of next year

Market operator Jianhua Group has partnered with North American fund Bofeng Asset Management to develop cold chain storage business, with both parties investing a total of HKD 663 million to acquire an old warehouse property located in Tsing Yi from SWIREPROPERTIES (01972.HK), planning to convert it into a cold storage facility. Jianhua Group Chairman Ling Weiye stated in a local media interview that the entire transaction was finalized within six months, and the property was officially received last month.

Ling Weiye pointed out that he is optimistic about the continuous increase in market demand for cold storage, and plans to increase investment to acquire more industrial properties, with floor area expected to grow exponentially.

The aforementioned industrial property is located at 4 to 6 Ching Tin Street, Tsing Yi, priced at HKD 663 million. The property consists of four low-rise buildings with a total area of 246,000 square feet, previously used for factory and storage purposes. Ling Weiye stated that funds will be invested to renovate the property, transforming it into a high-end cold storage facility that meets food and pharmaceutical storage standards, expected to be operational by the third quarter of next year. It is estimated that Jianhua Group will occupy at least half of the floor area, while the remainder will be for rental purposes.

Ling Weiye expressed interest in venturing into other real estate sectors, as the group itself operates fresh markets and has a certain understanding of operations, leasing, and promotion, and is also skilled in renovating and reshaping properties. Therefore, there is a strong interest in investing in shopping malls, and he intends to seek partners, including funds for joint investment.

He also believes that the property market, like the economic cycle, will experience fluctuations. Currently, Hong Kong's economy is undergoing transformation, and the transition period inevitably experiences growing pains. Due to his personal preference for long-term investment strategies rather than speculation, he is not overly concerned about short-term declines. He is confident about Hong Kong's prospects, believing that "tomorrow will be better, and we will continue to invest."