Hong Kong Land Holdings Limited Case Study Example | Topics and Well Written Essays - 1500 words

Hong Kong Land Holdings Limited - Case fill ExampleEven though HKL gave the least bid, HKL lost MPFA to Sun Hung Kai Properties Limited because the tenant had certain expert and modern standards which Landmark did not fulfill. As a result HKL lost HK$ 900,201 per month from rental income. little terror of undertakeovers Competitors believed that HKL was not fully utilizing its commercial properties. Subsequently so as to unlock the sh arholder value the jumper lead tycoons of Hong Kong tried to take over HKL. HKL sold some of its valuable holdings in order to fight of the take over. Even so two competitors, Cheung Kong (Holdings) Limited and Hutchison Whampoa Limited, managed to secure a 4.7% interest in HKL.Location Of the 11 estates it owns in Hong Kong, 8 of them are located in of import District (Exhibit 3). In addition the 11 Charter Road Development property is expected to be completed in 2002 which will march on increase the market dominance in Central District (Exhibit 4). It is said that Central is the Financial Heart of Hong Kong. So HKLs portfolio of commercial message Assets is concentrated in a promising market.Convenience The buildings in HKLs holdings have ease of access to all(prenominal) from of public transportation-the railway, airport and subway. In addition the buildings are all linked by a Central Pedestrian Bridge System which eases the movement of those who work or shop in the buildings regardless of the weather. For congresswoman Alexandra House & Prince Buildings are linked by pedestrian walkways that run across Ice House Street. in that location is alike a walkway that links Jardine House to Swire house and One Exchange Square (Exhibit 15)client Groups HKL has managed to attract leading brand retailers. Ermenegilo, Zegna, Prada, Ralph Lauren, and Gucci are some of the international brand retailers that are entering the Hong Kong market. These companies are beginning to see Hong Kong as a good market for their files. The pre sence of these clients increases the marketability of its retail properties particularly in Central District. Besides the brand retailers, HKL has also managed to create a portfolio of food and beverage shops in its obtain centers. This has amend the marketability of HKLs Holdings.Brand Name Through its promotional activities HKL has managed to redefine its role as the leading landlord. It was also successful in building up a commercial image for Central District done its partners. Its long experience in the business has enabled it to become business partners with its tenants especially in Central which it has been work since 1889WeaknessesAge of its properties Most of HKLs buildings are more than 20 years old (Exhibit 14). With changing modern buildings and improved technologies, most tenants are willing to pay more for new buildings.Equity Fund Raising Although HKL is working(a) in Hong Kong, it is not listed in the stock market of Hong Kong because of political fears. Theref ore cannot fund its needs topically by issuing shares.Nature of Leases Most of HKLs lease terms were short term. In 1999 alone, 25% of leases were referable for renewal. With short renewal cycles HKL is forced to reduce its rental prices in order to retain its existing customers.Threats sparing Problems The Asian Economic Crisis and the handling