Real estate investors have been buying up aging workshops and warehouses in Hong Kong city for conversion into offices, hotels and other commercial structures, as reported by Mingtiandi.
This comes in the wake of Hong Kong chief executive Carrie Lam’s announcement in October 2017 that government bureaus are developing policies to revitalise old industrial buildings for non-industrial use.
In a 27 December announcement, ‘shop king’ Tang Shing-bor bought the 29-storey Success Centre in the New Territories for HKD1.04 billion from joint owners Payson Cha’s Hanison Construction Holdings and Hong Kong-based private equity firm PAG.
The transaction occurred less than one year after the joint venture purchased the 240,485-square-foot industrial building at Ta Chuen Ping Street in Kwai Chung for HKD800 million—a 30 per cent profit in just 11 months. Tang actually previously owned the Success Centre before selling it to another investor for HKD750 million in 2013. No doubt he saw huge potential waiting to be unlocked with the property’s potential for commercial use.
Earlier in December, Billion Development and Project Management bought a workshop in Tsuen Wan from Wing Tai Properties for HKD2.16 billion—a new record for industrial building transactions in Hong Kong. Billion Development also purchased the Grandeur Factory in Kowloon’s Kwun Tong area for HKD1.32 billion.
At least nine industrial building in Tuen Mun—with a total gross floor area of 1.42 million square feet—have been purchased recently by local developers, including VCC Land founder Vivien Chan and Emperor International.
Another four industrial buildings, with a total gross floor area of 250,000 square feet, at tourism site Sai Kung has reportedly been purchased for redevelopment into residential sites and private schools. — Construction+ Online
