The buyers of The Center may need a little help financing the $5.2B deal
At the top of today’s Hong Kong news roundup, the saga of the $5.2 billion sale of The Center has taken another twist, as the mainland-backed consortium that bought the skyscraper is reported to be seeking to borrow up to 90 percent to fund the mega-deal. Also in the headlines, Hang Lung is angling to trigger a sale to buy out an industrial building in East Kowloon, while Henderson is putting some very tiny, very pricey flats on sale in the New Territories. Read on for more details about these and other developments in the city’s real estate scene.
The Center Buyer Said Seeking Huge Loan To Fund $5.2B Deal
The China-backed buyer of a Hong Kong skyscraper from billionaire Li Ka-shing for a record $5.2 billion is seeking to borrow as much as 90 percent to fund the deal, according to a term sheet seen by Reuters and people with knowledge of the matter.
The unusually high leverage level reflects a growing appetite from new mainland China buyers who are willing to pay a high price to get into the Hong Kong property market, at a time when many traditional local players are selling and investing overseas. Li’s CK Asset Holdings said last month it was selling The Center to C.H.M.T. Peaceful Development Asia Property. Read more>>
Hang Lung Applies for Compulsory Sale for $82M Building
Hang Lung Properties has applied for compulsory sale for redevelopment of a building in Amoycan Industrial Centre in Ngau Tau Kok. The building has an estimated value of about HK$642 million ($82 million).
Block one has a site area of 20,700 square feet. Hang Lung currently owns about 85 percent of the 56-year-old, eight-story building, according to the Lands Tribunal. There are three units on the fourth floor and two on the fifth floor that Hang Lung could not acquire, hence the developer applied for the compulsory sale as it owned more than 80 percent of the building. Read more>>
Savills Expects up to 5% Rise in Central Grade A Rents Next Year
The rent for Grade A commercial buildings in Central, Hong Kong, is expected to increase up to 5 percent, said Simon Smith, Senior Director of Research and Consultancy at Savills Hong Kong.
Smith said 90 percent of the space in Grade A buildings at Central, Admiralty and Sheung Wan has been rented out to mainland firms. He believed the price of Hong Kong overall Grade A buildings would also increase up to 3 percent. Read More>>
Buyer’s Stamp Duty Revenue Soared by 90% in Nov
The Buyer’s Stamp Duty (BSD) collected primarily from non-Hong Kong buyers surged nearly 90 percent month-on-month to HK$1.068 billion ($136 million) last month, the highest since November 2016.
The Inland Revenue Department has recorded 483 BSD transactions by the end of November, 25 more than the month before. Read more>>
Henderson Puts 187 SF Nano-Flats on Sale for HK$3M in Yuen Long
The smallest unit from a nano-flat project in Yuen Long — a 187-sellable-square-foot studio flat — costs about HK$3 million ($400,000).
Henderson Land put the 30 flats from its latest residential project, Park Reach, on sale yesterday, with sizes ranging from 187 to 310 sellable square foot one-bedroom units. The first batch has asking prices averaging HK$15,763 ($2,019) per square foot. The development comprises 63 flats in a seven-story building on Pat Heung Road. Read more>>
Goal Forward Buys Kwai Chung Industrial Properties for HK$6.4M
Hong Kong-listed Goal Forward Holdings has acquired five units and three parking spaces in Kwai Tak Industrial Center, Kwai Chung for HK$50.2 million ($6.4 million). The buyer is said to be planning to continue using the property as an industrial site. Read more>>
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