Leading today’s Hong Kong real estate news, Link REIT’s landmark sale of shopping malls to Gaw Capital and Goldman Sachs helped the trust reap a heap of money through property deals last year. Also in the headlines, Hong Kong developer Chinachem just says no to miniature flats, while another local builder plans to push more projects in 2018. As if there weren’t enough deals happening in the city, investors from Hong Kong made up over a third of total office transactions in London last year. Read on for all these stories and more.
Link REIT took in net capital of HK$3 billion through property transactions last year, chief executive George Hongchoy Kwok-lung said. The REIT intends to utilise the capital to pay loans and acquire properties in first-tier cities in the mainland.
The chief executive at Link REIT added the company would not take new actions to sell properties until the whole transaction process of its recently sold 17 properties is completed in the following month. Read more>>
Mico Chung, chairman of CSI Properties, said the developer would put four projects on sale this year. The first project will be the 50,000 square foot commercial building at 2-4 Shelley Street, Central.
Each floor in the building covers 2,300 square feet with an asking price of HK$30,000 ($3,853) per square foot. Chung added that an investor is interested in buying the building en-bloc, which has an asking price of HK$2 billion ($257 million). Read more>>
Sun Hung Kai Properties has sold 90 percent of its new industrial project in Tsuen Wan, New Territories W212 in two weeks. The unit in high floor with seaview is selling at HK$12,800 ($1,637) square foot.
Average price per square foot for industrial buildings in the district last year is around HK$3,400 ($434), up by 13 percent than the previous year. The number of sales in Tsuen Wan industrial buildings rose by 60 percent in 2017 annually to 848. Read more>>
A unit in Admiralty Centre in the east of Hong Kong’s business centre was traded at a price of HK$190 million ($24 million), or HK$29,000 (3,709) per square foot, according to media report citing market sources.
The unit is in phase one of the office building, with an area of 6,600 square feet (613 square metres). The asset is sold with an existing lease of HK$47 ($6) per square foot. The property can generate a rental yield of 1.9 percent for the new owner. The seller purchased the unit in 2011 for HK$88.7 million ($11.4 million). Read more>>
Chinachem Group said it would not sell tiny flats of less than 200 square feet in its portfolio. The group’s chief executive officer Donald Choi said that providing a healthy living environment at reasonable prices is their company’s focus.
Choi added that three-bedroom flats would account for about half of its 720-unit residential project in West Rail’s Long Ping Station, which is to be launched this year. Read more>>
Hong Kong investors pumped record amounts into London office deals in 2017, adding to the large volumes of international capital which are forcing property transactions out of the capital into the wider UK.
Transactions from Hong Kong accounted for over a third of total investment in London in 2017, and just under a half of all overseas investments, led by two large deals in first and third quarters, according to data from international property consultants CBRE. In the first quarter, 42 per cent of total investment came from Hong Kong, while in the third quarter the city contributed nearly 60 per cent of the total inflow. Read more>>