China Merchants Commercial REIT (stock code: 1503) has entered into an agreement to acquire its first student accommodation asset in Hong Kong, marking a strategic expansion into a new asset class. The acquisition was signed on December 29 through a wholly owned subsidiary, following shareholder approval in October for the REIT’s strategic upgrade, and represents the first execution step under its revised growth roadmap.
The property, located on Austin Road in Kowloon, has a gross floor area of about 23,600 square feet and sits close to several tertiary institutions, including The Hong Kong Polytechnic University. Valued at HK$213 million in November, the asset was acquired for HK$206 million, reflecting a discount of about 3.3%. The REIT plans to convert the building into a modern student residence with around 85 beds, alongside shared living amenities such as lounges and fitness facilities. Management said student accommodation offers resilient demand and stable cash flows, and the group will continue to seek diversified and defensive assets across Greater China to support sustainable distributions.