Compulsory sales are moving to the forefront of Hong Kong’s real estate news this week as mainland developers China Vanke and Agile Property are joining a game that has long helped local players enjoy healthy margins.
With Vanke completing an acquisition in Kowloon and Agile applying for a tender in Quarry Bay, Hong Kong-based Winland Group also got in the compulsory sale game for a Causeway Bay Property.
Keep reading for these stories and more from the world’s most expensive real estate market.
Developer China Vanke paid the tender reserve price of HK$249 million to acquire the remaining space in a mixed-use property in Kowloon this past week. The mainland giant was the sole bidder at the compulsory sale on April 23rd which allowed the company to gain sole ownership of a 2,445 square foot site at 13 and 13A Liberty Avenue in the Ho Man Tin area.
Vanke’s new site in the middle-class Kowloon neighborhood is a ten-minute walk from the Mong Kong MTR station and market sources speculate that the developer may seek to merge the property with neighbouring buildings at 9-11 Liberty Ave where it has applied for an additional compulsory sale. Read more>>
Vanke’s mainland competitor Agile Group Holdings is also pursuing a compulsory sales strategy to acquire sites in Hong Kong with the Guangzhou-based builder applying for a tender on the remaining space in an aging building in the Quarry Bay area.
Agile has already acquired over 90 percent of the space in the 56-year-old structure at 2-8 Mount Parker Road in the district of eastern Hong Kong Island, and has already purchased adjacent sites on the same street. If combined the properties would create a site which would yield up to 200,000 square feet of finished housing, according to an account in the Hong Kong Economic Times. Read more>>
Property agency-turned-investment firm Winland Group has applied for a compulsory sale for the remaining space in the Sun On Mansion, a commercial building in Hong Kong’s Causeway Bay area, pushing for a tender which would value the 55-year-old structure at HK$767 million, the Hong Kong Economic Times reported.
The local firm has already acquired 95.8 percent of the space in the building at 20-28 Cannon Street in the commercial district, and should its acquisition plan succeed, would be able to develop up to 65,000 square feet of office space on the site. Read more>>
United Parcel Service is relocating to The Octagon, a commercial building on Sha Tsui Road in western Tsuen Wan, in the New Territories, the Hong Kong Economic Times reported on 22 April.
The American express delivery firm has leased the entire 17th floor and nine units on the 19th floor of the building, paying a total rent of HK$550,000 per month for the 25,000 square foot space. The company’s new lease in the building developed by K.Wah International comes at a rate of HK$22 per square foot per month. Read more>>
Tsoi Chi-chung, the chairman of Asia Property Agency, has sold the last of his holdings in The Center on Queen’s Road following a disposal this month of a 2,852 square foot unit in the office tower.
Tsoi, who was part of the consortium which purchased the Center from CK Asset for HK$40.2 billion in a deal agreed to in November 2017 sold the unit for HK$99.67 million or around HK$35,000 per square foot, the Hong Kong Economics Times reported on April 26th. Read more>>