Land acquisitions drive up Wharf Holdings' shares

Shares of Wharf Holdings Ltd, owner of the two largest shopping malls in Hong Kong, climbed after announcements that it acquired two land plots in China's Jiangsu province.

The shares increased 7.1 percent to close at HK$55.90 on the HK stock exchange, making it the largest gain since July last year. The company also has the biggest gain in the Hang Seng Index, which climbed 1.1 percent.

Wharf Holdings, which owns HK Times Square and Harbour City malls and office complexes, has been acquiring land in China’s major cities like Tianjin, Hangzhou and Shanghai this year.

The two plots, which were acquired for a total of 1.12 billion yuan (S$220.1 million), will bring the company’s land reserve in China to over 110 million square feet, said Wharf in a statement, adding that it will build villas on the sites.

“Wharf is finding a new source of income,” said Kenny Tang, executive director at Hong Kong-based Redford Asset Management Ltd. “Besides earning stable rental income from shopping malls in Hong Kong, property projects in China gives Wharf more potential for growth.”