The areas and locations that were invested in by the HKL company to increase the presence of their assets and buildings had the following strengths, weaknesses, threats and opportunities.The HKL Company made the focus of its asset portfolio to be the Central District inHong Kongwhich was the heart of the Financial as well as the Retail sector in the region. This provided the company with strengths in terms of attractiveness to the retailers as well as the businesses inHong Kongto invest in property or rent space in the Central region. Additionally the influx of brands pertaining to the likes of Marks and Spencer’s, Burberrys etc also contributed greatly to the attractiveness and the strength of the location.
The weaknesses of the assets in terms of their location pertained to the facts that the location was limited and the competitors of the HKL Company in the market were diversifying into other regions. As a result the concentration of the assets in the Central location tends to make the company’s portfolio a bit risky in the long term. Moreover the older tenants in the district were also less willing to pay the higher market rent in the region.