China Mobile is ramping up in Hong Kong
Another Hong Kong purchase by a mainland investor leads Mingtiandi’s real estate roundup today as China Mobile walks away a winner from an industrial land sale in the SAR.
Also in the headlines, a 25 percent drop in rents in Causeway Bay makes it Hong Kong’s second priciest retail location and Korea continues to be a source of real estate capital globally with a $77 million investment by Hana in New York. Keep reading for all these stories and more.
China Mobile Latest Mainland Buyer of HK Asset
China Mobile, the world’s largest wireless network operator, has agreed to pay a record price for a parcel of industrial land in Hong Kong to outbid a handful of Hong Kong tycoons, possibly signalling the return of powerful mainland buyers to the city’s property market.
The telecommunications group offered HK$5.6 billion (US$722.6 million) for the 98,792-square foot (9,178 square metres) site in Sha Tin, New Territories with a 50-year lease, according to tender results published by the Lands Department late Wednesday. The plot is also the biggest piece to come to the market since 1998, according to surveyor CHFT Advisory and Appraisal. Read more>>
Tsim Sha Tsui Surpasses Causeway Bay as HK’s Priciest Retail Spot
Tsim Sha Tsui, located on the tip of Kowloon peninsula, has emerged as Hong Kong’s most expensive retail neighbourhood for the first time in its history. Causeway Bay, which had held the accolade until now, has been hit harder by sluggish luxury goods sales.
Tsim Sha Tsui, which is home to Canton Road and its Hermes, Chanel and Gucci luxury boutiques, has seen rents decline by about 17 per cent in the three months between April and June to an average of HK$1,018 (US$131) per square foot a month, real estate consultancy Cushman & Wakefield said. Retail rents in Causeway Bay, meanwhile, dropped by 25 per cent to HK$969 per square foot a month over the same period. Read more>>
Korea’s Hana Financial Picks Up $77M NYC Mezz Loan
Hana Financial Investment Co. Ltd. has purchased a $77 million mezzanine loan backed by a six-story space in the 101-story, 30 Hudson Yards, the third tallest skyscraper in New York, via a fund set up by IGIS Asset Management Co. Ltd.
Previously, Bank of America Merrill Lynch had provided a mezzanine loan on the six floors and Hana Financial invested in the refinanced loan, according to financial industry sources on July 9. Read more>>
Cross-Border REITs Catch on in Korea
A series of listings of Korean real estate investment trusts — including ones that involve investments in foreign properties – are adding vigor to the upbeat initial public offering scene in the local stock market.
This comes as investment houses here are moving to attract stable cash streams by luring investors to their own vehicles used to buy properties at home and abroad. Read more>>
Tokenising Catches on in Tokyo as Developers Securitise Online
Tokai Tokyo Financial Holdings and real estate development firm Tosei have partnered to offer digital securities backed by the rental income of office buildings in Japan, a Nikkei report said.
Tosei is a real estate firm based in Tokyo and owns about 102 properties in the Japanese capital. During the six months ended May 2020, Tosei had revenues of ¥2.7 billion ($25.2 million) from its rental business. Rental income from buildings it owns is just one of Tosei’s income streams. The revenues accounted for 6.1% of the company’s total, but the rental profits represent 48% of the company’s operating profit for the six months. Read more>>
Tangjong Pagar Office Floor Hits the Market for S$26M
The entire floor of office space on level 22 of Springleaf Tower is up for sale via expression of interest with a guide price in excess of S$26 million, sole marketing agent Savills Singapore said yesterday.
The renovated office floor has a strata area of some 10,527 sq ft and will be sold on a vacant possession basis. It comes with exclusive use of the lift lobby, pantry and restrooms. Completed in 2002, Springleaf Tower is in the Central Business District (CBD), at the heart of the Tanjong Pagar submarket. 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.
Leave a Reply