Real estate investor Francis Law Sau-fai has reportedly sold a commercial building in Hong Kong’s Sheung Wan area for HK$2.1 billion ($267 million) — three times the price he paid for the asset eight years ago.
Law, the executive director of property investment firm Toyo Mall Limited, is the second son of Lo Siu-tong, founder of developer Yu Tai Hing Co. The property scion sold 299 QRC, a 25-storey tower at 287-299 Queen’s Road Central to Hong Kong-based investment firm Tenacity Group, its founder and CEO Patrick Wong revealed to Mingpao.
The transaction price for the 94,500 square foot (8,779 square metre) building works out to HK$22,000 per square foot for the 1982-vintage tower some 10-minutes walk from the Sheung Wan MTR station.
Under its current leasing, the property generates an annual rental income of around HK$40 million, representing a two percent rental yield to the buyer, according to the report. The deal was struck at a price of HK$1.58 billion more than the HK$520 million that Law paid for the property in 2009, according to Mingpao.
Happy Tenant Becomes Proud Owner
The commercial building comprises three floors of retail space from the lower ground floor through the first floor, while the second to 23rd floors are for office use.
Wong told Mingpao that the company is optimistic on the outlook of the market in Sheung Wan and Central, as Tenacity says it intends to hold the tower for long-term investment with the possibility to renovate the en bloc property. The firm’s headquarters is on the 14th floor in 299QRC, its corporate website shows.
Patrick Wong is the son of billionaire David Wong Shou-Yeh, founder of Hong Kong-based Dah Sing Bank.
Law Cashing in HK$5B in 2 Months
Law was reported last month to be shedding another asset across the Victoria Harbour. The five-storey Toyo Mall in Tsim Sha Tsui, totalling 90,215 square feet of floor area, received at least three offers from undisclosed investors in early May, according to a Hong Kong Economic Journal account. The highest offer was said to be HK$2.7 billion. The shopping centre, currently under renovation, was bought by Law for HK$433 million in 1994.
Law could be reaping up to HK$4.8 billion in total profits in the span of two months if the Tsim Sha Tsui sale is successful.