Mapeltree, a venture of investment company Temasek Holdings has announced their plan to buy Festival Walk.

Mapeltree elaborated on its plan to acquire Festival Walk in Kowloon Tong – a major commercial complex, from Swire properties for the amount of $2.9 billion (HK$18.8). Festival Walk comprises of a Grade-A office building tower with the area of 1.2 million square feet and a seven storied shopping mall.

This will be the first investment of Mapeltree in the Hong Kong for the commercial property. The buying decision was influenced by the fact that the property will be added as an asset in the portfolio of the company.

The property will be bought with other investors as capital partners. Festival walk is the seed asset for the portfolio that company is targeting for the Hong Kong Specific fund.

Mapeltree is buying the property together with other institutional investors as capital partners.

"Given that Festival Walk is 100 per cent occupied with good quality tenants, upon completion, it will immediately provide good and stable returns to us and our capital partners”, said Mapeltree group Chief Executive Officer, Hiew Yoon Khong.

The property has an excellent location to target foreign buyers especially from china buying luxury goods. The deal is expected to be finalized by August Fall.