How does asset enhancement project of fresh market improve the performance of the asset? : a case of Link REIT

Abstract

Since 2005, the fresh market in Hong Kong under the public and private ownership has a very different performance. The fresh market under public ownership encounter deficit from year to year, but the performance under Link REIT’s fresh market performed better and the increment of rental income is rapidity. As the fresh market introduced to Hong Kong since 80’s, and most of them are not well maintained, the facilities deteriorated and the aging property will bring to an unsatisfied asset value. One way to increase the asset value is to apply asset enhancement works in fresh market.

Link is not only doing asset enhancement works in shopping centers, but also the fresh market, it brings a totally different image to the public regarding the enhancement works because they are the first market leader to introduce this kind of enhancement works in the fresh market. Therefore this dissertation will focus on the fresh market asset enhancement works by using a case study- Lok Fu Market to analysis the five main strategies used by Link.

Each strategy may bring out different effect to the fresh market, the importunacy of each strategy will be different case by case, and further analysis will included in this paper.