Leading today’s Hong Kong real estate news, the heir of Macau casino tycoon Fu Tak Iam has decided to take a gamble on a strata title office floor in Central, while WeWork has surrendered leases amounting to 20 percent of its total space in the Asian financial hub.
Also in the news, a hotel in Sai Ying Pun has gone on the market at an asking price of HK$450 million ($58 million), while a local supermarket chain has paid HK$160 million for a pair of retail units in Tsuen Wan.
Andre Fu, a Hong Kong-born hotel designer and the grandson of casino tycoon Fu Tak Lam, has acquired a 2,448 square foot (227 square metre) strata title floor in a commercial building in Central for HK$73.75 million ($9.5 million).
Fu bought the mid-level floor unit at Henderson Land joint venture 18 On Lan Street, which is within walking distance of Lan Kwai Fong and Wyndham Street, for the equivalent of HK$30,127 per square foot. Hong Kong-registered company Smart Ease Development sold the property after acquiring it in 2010 for HK$17 million, earning the company a capital gain of HK$56 million in 10 years.
Cash-strapped US coworking giant WeWork has surrendered 20 percent of its Hong Kong locations to their owners, including giving up a ten year lease of a two-floor unit in Hysan Place in Causeway Bay which the firm had committed to in November last year.
The news comes shortly after Mingtiandi revealed that WeWork had handed back its renovated facility in the Harbourside HQ in Ngau Tau Kok and had surrendered its space in Wharf’s Harbour City complex in Tsim Sha Tsui, which the firm failed to open in the last quarter of 2019. Read More>>
Local company China Hotels and Residences acquired a 2,471 square foot residential building at 16 Elgin Street in Central for HK$45 million, or HK$18,211 per square foot, according to a local report last Friday.
Corporate investor Weina Development Limited sold the property, which includes retail space on the ground floor, after buying up a set of units at 16 Elgin Street and neighbouring 18 Elgin Street in 2010 for a combined HK$65 million.
On 5 May Weina had sold the 574 square foot basement of 18 Elgin Street for HK$15 million, according to public records, and has now disposed of 100 percent of its holdings in the pair of buildings for a total of HK$100 million. Through the sales the development firm has achieved a mark up of HK$35 million on its original investment. Read More>>
A 26,779 square foot hotel in the western Hong Kong island district of Sai Ying Pun has been put on the market at an asking price of HK$450 million, or HK$16,804 per square foot, according to Colliers International, which has been appointed as sole agent for the sale.
Located at 199 Queen’s Road West, the 40-room hotel is within one minute’s walking distance of the Sai Ying Pun MTR station and is about 1.5 kilometres (0.9 miles) west of the Macau Ferry Terminal. Hong Kong-registered company Top Power Holdings Limited acquired the building in 2014 for HK$25 million and later redeveloped it into a 26,779 square foot hotel, according to public records.
The most recent sale in the same street took place on 22 June last year when a 36,389 square foot residential building sold for HK$600 million or HK$16,488 per square foot – 1.9 percent less per square foot than the asking price for the hotel. Read More>>
Kai Bo Food Supermarket founder Lam Hiu-ngai is said to have acquired a pair of retail units in Tsuen Wan for HK$161 million, or HK$11,500 per square foot, according to a local news report on Monday.
Located at 10-20 Tai Ho Road, the units, which measure 1,400 square feet combined, are currently leased to Hong Kong beauty products chain Bonjour Cosmetics. The seller is reportedly a private investor who originally purchased the assets for HK$155 million in 2013, with the sale indicating a capital gain of only HK$6 million over the seven year period. Read More>>
Packed eateries over the weekend were a welcome respite for struggling restaurant operators hit by months of street protests and coronavirus outbreak, but analysts and entrepreneurs warned Hong Kong’s food and beverage sector is still months away from a full recovery.
Many mall and restaurant operators have taken advantage of the government’s relaxed social distancing measures to launch marketing campaigns to boost sales, ranging from shopping vouchers, discounts, free parking and other giveaways to boost sales. Read more>>