Mapletree NAC Trust says damaged Hong Kong mall still closed

THE manager of Mapletree North Asia Commercial Trust (MNACT) on Tuesday night said its Festival Walk shopping mall in Hong Kong remains closed until further notice.

Due to extensive damage suffered last week in the city's unrest, recovery works at the property including the cleaning up of debris and the assessment of repair works required are ongoing.

Insurers have been notified, and the assessment of claims is underway, the real estate investment trust's (Reit) manager said.

"We are assisting and working closely with our tenants as the mall is not operational," the manager added.

Metal hoardings have been erected at parts of the mall for safety and security precautions.

Units of MNACT tumbled on Nov 13 following news overnight that anti-government protesters had smashed glass panels at Festival Walk's entrances and set fire to the Christmas tree in the mall.

The mall has been closed since Nov 12 amid city-wide disruptions. A DBS note on Nov 13 was of the opinion that sentiment on MNACT will remain cautious. "We believe that over time, the landlord may have to rethink potential tenant incentives in order to work together with tenants to ride out the current uncertain operating environment in the near term," the note stated.

The Singapore-based Reit generated about 62 per cent of net property income from Festival Walk for its second quarter ended Sept 30.

MNACT units closed down one Singapore cent or 0.86 per cent at S$1.15 on Tuesday, before the announcement was made.