Shenzhen Developer To Build Office & Retail Project In Causeway Bay
HONG KONG – An ageing block in Causeway Bay has been acquired for HK$3.2 billion (US$408.5 million), with local news outlets linking the new owner to a mainland Chinese developer that intends to develop the site into a “Ginza-style” office and retail project, reported Mingtiandi on Wednesday evening (17 August, SGT).
The buyer is Tsui Yee, who has been linked to Shenzhen developer Centralcon Properties. Tsui is forking out roughly HK$16,200 psf based on the maximum floor area to acquire the property known as Haven Court, stated the seller Soundwill Holdings in a filing with the Stock Exchange of Hong Kong (HKEX).
Market watchers expect the buyer to redevelop the 63-year-old building into an office and retail project measuring 18,401 sq m (198,075 sq ft). Upon completion, that mixed-use commercial property could be worth up to HK$5 billion, estimated Tom Ko, Head of capital markets and Executive Director at Cushman & Wakefield Hong Kong.
Situated at the intersection of Leighton Road and Haven Street, Haven Court is just a short walk from the Causeway Bay MTR Station, which is just three stops east of Central. Based on municipal records, the land plot is zoned for mixed-use projects and has a plot ratio of 15.
If developed for commercial use, the new owner will be permitted to redevelop the existing structure into an office and retail building with a gross floor area (GFA) of up to 198,075 sq ft. But if it’s turned into a purely residential development, the GFA will be capped to about 118,845 sq ft, said a market watcher, who added that Centralcon Properties may opt for a “Ginza-style” building similar to adjacent commercial properties so it can house eateries and smaller occupants aside from office tenants.
News of the deal comes as sales of existing office properties in Hong Kong totalled HK$1.1 billion in Q2 2022, which marks an 85 percent year-on-year slump, based on a report published by Colliers in July.