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LHN Limited, a Singapore-based property management services group, has clinched its first overseas carpark management contract in Hong Kong, revealed an SGX filing on 22 May (Monday).
This represents the group’s 42nd carpark property under management, and will be run by a recently created wholly-owned subsidiary, LHN Parking HK Limited.
The three-year contract, which is set to start on 29 May 2017, was granted by the Government Property Agency (GPA), which manages and optimises the use of all state sites and properties in the city.
The agreement pertains to the management of a carpark property at No. 1 Ting Kok Road in Tai Po consisting of 76 carpark lots, four motorcycle lots and two lots for disabled persons.
Aside from operating the carpark property, LHN Parking HK Limited also intends to seek other opportunities in the market.
“The value of this management contract may be relatively small but its significance to our group is huge because it marks our entry to the Greater China region,” said Kelvin Lim, Executive Chairman & Group Managing Director of LHN Limited.
This move also supports the group’s intention for a dual listing on the Hong Kong stock exchange.
Notably, Hong Kong carpark lots are highly sought-after due to their limited supply and buyers are known to pay large sums to own private lots. In fact, the Straits Times reported that an investor paid HK$2.46 million (S$425,000) to acquire one in April 2016.
In total, there are around 683,000 parking spaces across the city. Of this, about 198,000 are set aside for public use, while the rest are for private use in commercial, residential and industrial premises.
This article was edited by Denise Djong.
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