5 HK Commercial Properties Enter The Market
HONG KONG – Five commercial properties owned by Kailong Group on Hong Kong Island has entered the market in the past two months, with a combined price of up to HK$2.37 billion (US$302 million) if the fund manager succeeds in disposing them, reported Mingtiandi on Thursday evening (30 June, SGT).
In June, Kailong started looking for a buyer for an office tower at 58 Wing Lok Street in Sheung Wan known via a public tender with an asking price of HK$450 million. The 21-storey office building measuring around 20,100 sq ft is being divested via collective sale, as per a press release from sole marketing agent Knight Frank.
Known as, the commercial property’s ground level is occupied by retail premises. It’s asking price translates to around HK$22,500 psf.
The asking price is “very reasonable,” given that opportunities to acquire en-bloc commercial assets in the area are limited. Also, the buyers would be paying a higher premium compared with strata-title acquisitions, said Antonio Wu, Head of capital markets for Greater China at Knight Frank.
The fund manager has kept the office tower unoccupied to maintain flexibility for would-be buyers, Wu added.
In Wan Chai, an office and retail project on 303 Jaffe Road called Konnect started its tender, with the fund manager seeking HK$1.85 billion (HK$21,458 psf) for the 25-storey commercial property. At present, asking rents for the office space there ranges from HK$40 psf to HK$55 psf per month. Although the tender closed on 8 June, no winning bidder has yet been announced.
Last week, sources said that Kailong Group divested an 18th-floor unit at the 333 Hennessy Road commercial building in Wan Chai for HK$11.8 million. The fund manager is also marketing level 5 and 6 in the same development with an asking price of HK$31 million per floor, or at HK$17,704 psf and HK$17,765 psf respectively.
The five commercial properties were acquired by Kailong Group via a series of purchases in 2017 that totalled HK$3.7 billion. In particular, the fund manager invested a total of HK$1.65 billion on the two Wan Chai properties at Jaffe Road and Hennessy Road.
As for the Sheung Wan office building, it was purchased in the same year, as part of a set of five en bloc acquisitions in the district with a collective price tag of HK$1.4 billion.