Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

CLSA Capital Partners Sells Hong Kong’s Zing! Retail Centre for $269M

2017/08/15 by Greg Isaacson Leave a Comment

Zing! in Causeway Bay’s prime shopping district sold for HK$2.1 billion

CLSA Capital Partners has sold Zing!, a 27-storey retail centre in the heart of Hong Kong’s Causeway Bay retail district, for HK$2.1 billion ($268.6 million).

The undisclosed buyer is reported to have paid for Zing! by selling The L. Plaza, a HK$1 billion ($127.9 million) commercial building on Queens Road Central in Sheung Wan, to CLSA Capital Partners while paying an additional HK$1.1 billion ($140.7 million) to complete the deal, according to an account in the Hong Kong Economic Times.

Zing! is a “Ginza-style” shopping mall, so called for its resemblance to the high-rise retail buildings with nightlife offerings in Tokyo’s glitzy shopping district. With floor plates of around 1,750 to 3,400 square feet, the 79,051 square foot building is said to be fully leased out to retail tenants from food and beverage operators to gyms, beauty salons, clubs and karaoke spots.

The building is located at 38 Yiu Wa Street, adjacent to Times Square Hong Kong in the second-priciest shopping district in the world.

Vertical Retail Building Gets a Lift from Surging Rents

John Pattar CLSA

CLSA Capital Partners chief John Pattar and his team had bought the Causeway Bay property in 2014

CLSA Capital Partners, the Hong Kong-based alternative asset manager, purchased the building formerly known as Bigfoot Centre in 2014 for HK$1.4 billion, refurbished it, and re-launched it as Zing! in March 2015. According to the Economic Times report, the company reaped a profit of around HK$500 million ($63.9 million) from the sale, which marks the fourth commercial building transaction in the Causeway Bay area since July.

The private equity arm of Asian investment group CLSA put Zing! on sale via public tender in May and received a strong response from groups looking to take advantage of a hot investment market. CLSA Capital Partners expected the building, which was jointly marketed by Colliers International and Savills, to fetch over HK$2.3 billion, according to a report in The Standard.

“The price for a similar property in Sheung Wan and Admiralty is now more than HK$30,000 per square foot and our price should not be lower than this level,” said Ronald Chiu, an investment director at CLSA Capital Partners at the time.

The retail building has been generating a rental income of over HK$60 million ($7.7 million) per year, according to the newspaper, with rents rising by 70 percent in just three years from HK$35 to more than HK$60 per square foot. The buyer will reportedly enjoy a three percent return.

Mystery Buyer Performs En-Bloc Property Swap

The L. Plaza at 367-375 Queen’s Road Central in Sheung Wan sold for a reported HK$1 billion

The buyer of Zing! is believed to be a low-key local family with a taste for en-bloc building acquisitions. The family, which is reported to have purchased the entirety of The L. Plaza in 2015 for HK$810 million, auctioned the property with an asking price of about HK$1 billion this past April but was unable to sell.

The deal with CLSA Capital Partners enabled the family to get The L. Plaza off its hands while acquiring a more valuable asset in Causeway Bay. Completed in 1984, the 22-storey, 58,269 square foot building is around 90 percent leased out with a rent of HK$28 to HK$30 per square foot and a rental income of nearly HK$2 million ($256,000) per month.

In 2010, the same investor spent nearly HK$1 billion to acquire a commercial building at 88 Gloucester Road, Wan Chai, which is conservatively estimated to have doubled in value since then.

The Causeway Bay investment market has been active lately, with four en-bloc building transactions totalling HK$6.7 billion ($856.9 million) since July, including the Zing! sale. Other deals have included a local investor buying the Cubus Building at 1 Hoi Ping Road from Fubon Insurance for nearly HK$2 billion ($255.9 million), and Lin Zifeng purchasing Lockhart House at 441 Lockhart Road for HK$965 million ($123.4 million).

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Retail Tagged With: Causeway Bay, CLSA Capital Partners, daily-sp, En bloc, Featured, highlight, Hong Kong, Retail

Office forum 2022 Jumbo

Leave a Reply

Your email address will not be published. Required fields are marked *

Essensys - Verdantix research repot

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

varoon malik thumbnail
Global Capital, COVID-19 Drive Demand for Real Estate Market Information: MTD TV
MTD TV proptech show
COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV

More MTD TV Videos>>

People in the News

Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India
Antoine Mesnage
AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

Antoine Mesnage

AXA IM Alts is shaking up its leadership team Down Under with the appointment of Antoine Mesnage as the French firm’s … Read More>>

More Industry Professionals>>

Latest Stories

Lin Ho Man
Evergrande to ‘Vigorously’ Fight Winding-Up Petition Filed by Disgruntled Investor
Sunac Sun Hongbin
Sunac Meets Investors to Seek Second Extension on $600M in Domestic Bonds
Actis to Invest $700M in India Life Science Assets and More Asia Real Estate Headlines

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.

"*" indicates required fields

Terms of Use and Privacy Policy*