Champion REIT (02778) surged over 6% during intraday trading. As of press time, the share price was up 4.77%, quoted at HK$2.195, with a turnover of HK$4.1823 million.
According to media reports dated October 12, Laopu Gold leased an entire floor at Exchange Square in Central, Hong Kong, spanning approximately 13,000 square feet, to support its global expansion plans.
Global real estate services firm Colliers previously published a research report stating that the recovery pace of Hong Kong's Central office market is notably leading the overall market, primarily driven by a rebound in capital markets, expansion of the financial services sector, and continuously rising demand for premium office space.
UBS released a research report upgrading Champion REIT's investment rating from "Neutral" to "Buy," and raised its target price by 4.3% from HK$2.3 to HK$2.4. The bank believes that given Champion REIT's relatively small market capitalization and limited trading liquidity, the market has been underestimating its potential as a beneficiary of the Central office market recovery. With the vacancy rate of Grade A offices in Central dropping below 8%, the bank expects that the implementation of the "carried interest" tax reform — which proposes a zero tax rate on performance-linked bonuses for hedge fund and alternative asset management professionals — will further stimulate leasing demand for Central offices from asset management companies.
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