1/2/2018-5

East Kowloon commercial high quality consortium tenant

The sale and rental of commercial buildings in East Kowloon are booming recently. As the rents and prices of commercial buildings in the core areas have soared, capital flows into East Kowloon and the quality of commercial buildings in the area have attracted attention from consortia and tenants.

Entering into 2018, the investment climate in the market continued to be prosperous. Regarding the sale and purchase, Kowloon East recorded a large number of large-value transactions involving 9 floors at 18-28th Floor, Silom Tower, Kwun Tong, with an area of ​​about 17,300 square feet The transaction price was nearly $ 2.1 billion and the price was nearly $ 13,000 to $ 14,000. Based on the transaction price, it is the sale and purchase of the largest hand-storey commercial building in East Kowloon in recent years.

Silk International Building, 9th floor, 21 billion sales in recent years

It is reported that the new buyer for the Indian boat king CHELLARAM family partner Anzu Gordon Fund. According to information provided by the Land Registry, the above nine floors have been divided into registrations, which do not preclude new buyers from resale in the form of company purchases and sales in the short term.

The original owner, the Mainland Silibao Group, acquired 10 floors of the property with a total consideration of 1.068 billion yuan in 2010 from Xindi (00016). With the advertising space and building naming rights, the foot price was only about $ 6,800. In 2015, the Group sold its 22nd floor for $ 250 million and now sells the remaining 9 floors. The total number of 10-storey units now stands at about 2.35 billion and profits of nearly $ 1.3 billion leave the market. In fact, lots of lots were traded and sold in recent months. The largest of these transactions was Wheelock sold 8 Bay East commercial buildings to Greenview China Group for 9 billion yuan. However, Billion Beijing and Roche Real Estate also purchased the British Asia Factory The building and Maxwell Industrial Building, together with the 9th floor of the Sims Tower, dealt in a total of about $ 13.7 billion. As a result, the trading volume has been very high.

As regards tenancy, a number of large hand rentals, including 133 Wai Yip Street, Kwun Tong, have recently been booked in East Kowloon. There are about two floors of the property covering a total area of ​​about 28,000 square feet and a lease of about $ 22 per square foot.

Shared work space rental into the main business

In fact, the recently shared workspace has continued to be the mainstay of the rental market for commercial buildings. Recently, a number of advertising spots on the top floors of 25th and 26th floors of Two Harbor Square in Sun Hung Kai and Wang’s Kwun Tong’s new commercial premises are advertised in Hong Kong Island. 55,000 sq ft of floor space, rented by naked Hub for shared workspace, $ 30 per sq ft. As for the recent market’s largest piece of leasing, it also appears in East Kowloon. The three-story floor covering Mapletree Bay Point, the Singapore-based fund, involves about 100,000 square feet and is leased at about 25 yuan per square foot. Tenants for the world’s major clothing and purchasing company VF. The above three leases collectively absorb over 180,000 square feet in East Kowloon.

Analysts said that in the past year, the market for commercial buildings markedly started, while the transaction prices in Central and Admiralty districts and commercial buildings were generally over $ 30,000. At the Far Eastern Financial Center and the Central Center, the price per square meter even exceeded $ 50,000, Under the shortage of supply, funds have started to switch to East Kowloon commercial buildings. At present, the new commercial buildings in Kwun Tong are only about $ 10,000 per square foot, relatively low in water price. In the meantime, footbridges in the core area are also at a high level, and the increase in footfalls such as Central and Wanchai has led to the relocation of institutions to save costs. The quality of the East Kowloon commercial building is much better than that of the core area, but only 25% To 30 yuan. Therefore, the recent success in attracting businesses to relocate will help digest the new supply in the district. It is expected that the trading and rental of commercial buildings in East Kowloon will flourish this year.