From day one, Link adopted the attitude that positive-sum gain for everyone it touches is its surest path to success. In time, it walked this particular walk along a winding road—at first with hesitation, then with increasing boldness to venture where no Hong Kong property company has gone before. Along the way, it developed value-driven sustainability that informs and resonates with its people and its places.
First things first: Link was born with numerous moms and pops in communities where they needed much more than supermarkets or medical clinics. Its raison d’etre has always been to proactively help people live better. As a listed company, however, it needed to anticipate both risks and opportunities with the understanding that interests may differ. Despite wanting to do everything everywhere all at once, it knew that as a new kid on the shopping mall block, Link could not go gangbusters from the starting gate.
Initially, the focus was on tenants. Many were operating in dated premises that saw little footfall much less transactions despite being sited along the way from home to work. Link’s first task was to ensure that its assets retained its customer base while building a positive business environment for shopkeepers. As the front lawn for housing estates, potential and existing customers came primarily from this catchment at first. Link customised renovations with built-in third spaces where residents could proudly hang with friends and family as extended living rooms. Rather than tear down and rebuild, properties were upgraded to sustain sense of place. Most tenants remained operational during phased construction with minimised disruption or financial impact.
Successful asset enhancement led to tenants generating increased revenue, which translated to increased rental yields and increased returns for investors. The upward spiral of goodness allowed Link to continue injecting energy and vitality into its assets, sustaining them for robust futures. Programmes included succession plans for long service market operators; improved working conditions allowed for older generations to pass on the family businesses to younger ones. It was a complete 360: Millennials and Zoomers who previously avoided wet markets grew optimistic about taking over the family trade in addresses they happily share on IG posts.
As the gap between what people desired and what Link provided narrowed, focus shifted towards investors. Like tenants and customers, they began wanting more. To sustain expectations, Link learned their language. It formed a dedicated committee at the board level to ensure that interests are aligned, while everyone worked towards the same goal—essential for the company’s continued growth. It diversified its revenue stream: initially with similar complexes through purchased properties; then through acquisitions and joint ventures beyond Hong Kong into mainland China, Singapore and Australia. At the same time, it began diversifying across asset classes and started developing from scratch, culminating in its corporate headquarters The Quayside.
The common denominator between all Link’s sustainability initiatives is business incentive. It could be lowering capital costs through Green Bonds or sustainability-linked loans. It could be gaining feed-in tariff incomes through Link’s solar PV installation programme. Or it could be increasing carpark revenue through EV charger rollouts while simultaneously promoting greener lifestyles. Barrier-free access benefits those in wheelchairs or who are visually impaired, encouraging them to enjoy assets independently. Its Food Angel programme promotes food waste reduction while mitigating anticipated municipal waste tariffs. Green building certifications are important to investors and anchor tenants, with Link’s latest developments and renovations adhering to the industry's best practices.
Most recently, Link published a white paper on how Sustainability-Linked Insurance through climate risk assessments and targeted resilience investments can reduce property insurance premiums, building upon lessons learned while battling Hong Kong's worst flood in centuries. Together, these initiatives preserve and create business value while lowering risk. In today’s economic climate, pre-emptive protection of its real estate portfolio is key —and alliance with investors' interest helps to get us there.
For Link, the ability to make its assets relevant is how it continues to define itself into the future—and why sustainability is embedded into every place it is responsible for.
“ When people around us do well, we do well”
“We define sustainability to be two goals: preserving and protecting value + create additional and new value”
