The value of Pan Sutong’s stake in a Kai Tak project rose by 4% in five months
Working on a short week Hong Kong’s real estate investors and operators still managed to complete a number of high profile investment and leasing deals before the Easter holiday, including major transactions in the Kai Tak area. The largest deal near the former airport site involved a listed investment company agreeing, with the support of a South Korean investor, to buy a 40 percent stake in a HK$9.25 billion residential project from the company’s chairman at a tidy profit.
In the same neighbourhood, Henderson Land is closing in on its latest compulsory sale, while back in Central, one of the original members of the consortium which bought out the Center seems to have nearly completed his exit from the 18-month investment drama.
Read on for all these stories and more in our roundup of headlines from Hong Kong’s local press.
Goldin Buys Stake in Kai Tak Project Chairman for HK$2.2B
Hong Kong-listed financial group Goldin Financial has agreed to purchase a 40 percent stake in a project in Kowloon’s Kai Tak district from its chairman, Pan Sutong, for cash consideration of HK$2.16 billion and assumption of existing liabilities, according to a statement to the Hong Kong stock exchange.
Goldin received $243 million in mezzanine financing from Korea’s Mirae Asset Daewoo to support the investment, according to reports in the Korean media.
The developer, together with Pan had won the tender for the site in November last year at a price of HK$8.9 billion. The plot, which can be developed into 53,394 square metres of housing, has been valued at HK$9.25 billion, with Pan holding a 60 percent stake, while Goldin Financial, which Pan controls, having 40 percent ownership. Read more>>
Henderson Land Applies for Compulsory Sale Near Kai Tak
Henderson Land has applied for a compulsory sale of properties in a set of buildings in Kowloon’s To Kwa Wan area as the blue chip developer aims to redevelop a site located on the west shore of Kowloon Bay near the former Kai Tak airport site.
Henderson has acquired an 83 percent ownership in 58-70 Lok Shan Road, 1-9 Mei Wa Street 1-9 and 18-20 Ha Heung Road but still need to buy out stakes held by 21 property owners via tender. Should Henderson’s application for the compulsory sale, the 11th such application in the city this year, be successful, the developer would be able to combine the properties with other holdings in the area to develop a 370,000 square foot commercial and residential project. Read more>>
Asia Property Boss Sells Unit in the Center for HK$114M
The chairman of Asia Property Agency, Tsoi Chi-chung, a member of the consortium which acquired the Center from CK Asset for HK$40.2 billion in 2017, has sold a unit on the 22nd floor of the office tower for HK$114 million, according to the Hong Kong Economic Times.
An unidentified buyer purchased the 3,184 square foot unit, paying the equivalent of HK$35,990 per square foot. Tsoi, a prominent property broker in the city had purchased two floors in the tower as part of the consortium, and has now said to have sold off nearly all of his holdings in the skyscraper, the Times said. Read more>>
Australian Co-Working Provider Leases a Floor in the Center
As mainland co-working provider Kr Space sees its Hong Kong ambitions fall into a lawsuit, there are still other shared workspace providers willing to try their luck in the world’s most expensive real estate market. Australia’s Victory Offices, a division of Melbourne conglomerate Victory Group Holdings, has just just rented a whole floor in The Center on Queen’s Road for around HK$2.5 million per month, according to a report in the Hong Kong Economic Times.
The lease of the 25,000 square foot office, said to be on a high floor in the 73-storey tower, works out to a rent of $100 per square foot per month, as the Australian company ventures into Hong Kong for the first time. Read more>>
Kwun Tong Industrial Building Sells for HK$360M
The Chung Pak Commercial Building, an industrial asset in Kowloon East’s Yau Tong area sold recently for HK$360 million on April 16, according to an account in the Hong Kong Economic Times.
An unidentified buyer paid the equivalent of HK$7,200 per square foot to purchase the entire 49,794 square foot building in Kwun Tong district, marking a more than 28 percent increase over the most recent transaction in the building, with two floors in the having changed hands for HK$5,600 per square foot last year. Read more>>
Watch Seller Renews Causeway Bay Lease at 23% Premium
Prince Jewellery & Watch Company has decided keep its streetfront on Kai Chiu Road in Causeway Bay as the local retailer has renewed its lease for HK$1.35 million per month.
The new agreement between Prince and its landlord marks a 23 percent increase over the contract which the two parties had signed two years ago for the space opposite Hysan Place near where Kai Chiu Road intersects with Russell Street in Hong Kong’s most expensive retail strip.
The new rate for the 3,400 square foot shopfront works out to HK$400 per square foot. Read more>>
Tune in again soon for more Hong Kong news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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