Guanhua Mirror Factory 4 billion to buy 8 Observatory Road
The local consortium has sufficient funds. According to the news, Guanhua Mirror Factory purchased the entire building of No. 8 Observatory Road, Tsim Sha Tsui for about $4 billion.
In recent years, attacking the Ginza-style commercial building
Recently, Henderson Land (00012) and Lai Sun (00488), 8 Observatory Road, Tsim Sha Tsui, were sold for about $4 billion. The buyers were local consortiums. According to market sources, the buyer is Guanhua Mirror Factory, which has been investing in Hong Kong retail properties and is mainly based on rent collection. It was purchased at the Ginza-style commercial building on the 8th of the Observatory Road. The rental return rate was about 2.4%.
In fact, the Group has been actively developing the Ginza-style commercial buildings in recent years, including a $200 million redevelopment of the Group’s Nathan Square in Mong Kok, Mong Kok. It was completed last year and its rental performance was satisfactory.
In addition, the Group previously purchased units 1 to 6 on the 11th floor of Yincheng Plaza in Mong Kok, involving approximately RMB 60.38 million and an area of 4,357 square feet.
The 18th floor of the Observatory Road is 19 stories high. It is used by the underground to the 9th and 21st floors. The 2nd to 7th floors are catering floors, while the 10th to 20th floors are for office use. The floor area is about 9,000 to 11,000. Square 呎, the total floor area is about 183,000 square feet, merchants mostly rely on food, the occupancy rate is ideal, the rent is about 50 yuan, with a transaction price of 4 billion yuan, the price is about 22,000 yuan.