Purpose of the project
Asset enhancement of Lok Fu Plaza and Market was completed in phases over a five-year span between 2008 and 2013, which aims to transform what was an aging property into an attractive and modern destination that serves the local community and draws shoppers from other districts. The Link REIT's enhancement project not only create economic opportunities, it also have an impact on uplifting the standard and quality of life for the nearby community. To demonstrate the overall effectiveness of The Link REIT's business, an assessment was conducted to quantify the socio-economic contributions of Lok Fu Plaza and Market.
The Link REIT commissioned KPMG Hong Kong to
conduct a socio-economic impact assessment of our operations at Lok Fu based on KPMG’s True Value methodology. The study considered economic value generated by our shopping centre, benefits to local government, economic impact on the community and perceived changes in community quality of life.
The study found that every HK$1.00 we invested in Lok
Fu Plaza and Market, generates between HK$2.10-$4.10 and HK$1.80-$6.70 in annual socio-economic benefits, respectively. A survey of shoppers and residents revealed that after asset enhancement, Lok Fu catered to an expanded catchment area. The induced shoppers are from a younger demographic, and there is an increase in both shoppers' spending and time spent. For the nearby residents, they have a strong social dependence on the property, which now provides better public areas enabling social networking and community development. The outcome of this initial study enable The Link REIT to measure and understand the overall contribution of its shopping centres and allow The Link REIT to identify priority areas for improvement in future asset enhancements. By quantifying the socioeconomic
impacts at Lok Fu, The Link REIT is establishing a platform to ensure that the communities that operate in increasingly benefit from the business operations.
"The success of Lok Fu Plaza and Market demonstrates our ability to create and deliver value through careful planning and execution of our asset enhancement and management. We deliver innovative leasing management that improves business for our tenants and establishes a social hub that integrates our properties with the community."