Taikoo Shing City Center 2 Commercial Buildings 15 Billion Concluding Meetings New buyers are Chinese-funded conglomerates
The investment atmosphere of commercial buildings is hot. According to sources, the two office buildings in the third and fourth blocks of the Taikoo Shing Center are being concluded by the Chinese-funded consortium for about 15 billion yuan. They will change hands in the short term, and the price will be about 19,000 yuan. The individual floors will be sold immediately.
At the beginning of last month, Swire Properties (01972) announced that it was in discussions to sell the rights to the third and fourth blocks of Taikoo Shing Centre in Quarry Bay. According to the sources, the project is being negotiated by a Chinese-funded consortium. The two sides have reached a consensus that the two properties will have a total floor area of about 790,000 square feet, with a total investment of about 15 billion yuan and an average price of about 19,000 yuan.
Rent rate is 100% return over 3%
According to sources, the Chinese-funded consortium business includes real estate, funds, etc. In the past, it had previously invested in London, England, and Hong Kong had less investment. The quality of the Taikoo Shing City Center building is good and enjoys a full view of the sea, plus the occupancy rate is 100%. If the price of the building is about RMB 19,000, the rate of return will be over 3%, so it can be used for long-term investment.
The news pointed out that in addition to the possibility of holding rent, due to the current booming commercial market, the price of all buildings in the district continued to rise, and the spin-off project was popular. The third part of the rights of Taikoo Shwe Center was held by the government and was not a full title. Therefore, the new buyers were deployed at the same time to close the sale of individual floors. If current market conditions are buoyant, and Hong Kong Island East Taikoo Place has almost no quality stratified commercial buildings available for purchase, I believe that the launch will attract capital.
790,000 office buildings with a price of 19,000
This involved the third and fourth properties of the Taikoo Shing Center, which were completed in 1992 and 1991 respectively. The total floor area is approximately 440,000 and 556,000 square feet, and it is the Taikoo Place core commercial building under Swire Properties. In 2014, the government sent an 8-story industrial building, such as the Honghe Building in Quarry Bay, to redevelop Swire Properties to exchange about 205,000 square feet of ten floors on the third floor of the Taikoo Shing Center in Swire Properties. In other words, Swire Properties currently owns a third floor that is reduced to about 226,000 square feet, together with a fourth seat totaling about 790,000 square feet.
It is understood that the two properties have a floor area of approximately 18,700 to 19,300 square feet per floor and the occupancy rate is 100%. Well-known tenants include American Express, adidas and WeWork, etc., and leases cost between RMB 45 and RMB 50. Over the years, Swire Properties has been actively developing Quarry Bay, through the acquisition of industrial buildings, old buildings, etc., to rebuild into a new commercial building, playing the business kingdom.
Incomplete ownership rights Taidi is willing to put on sale
In terms of location, the third and fourth blocks of Taikoo Shing Center are slightly off the Taikoo Place core shopping complex, including the Hong Kong Island East Centre, Dorsett Mansion and the PCCW Centre. They are also willing to sell because they have non-complete ownership rights.
In terms of commercial transactions in the same district, the most recent large-scale transaction was that in January this year, Henderson (00012) withdrew about RMB 10 billion from the entire commercial building at No. 18, Jinghua Road, North Point. The transaction price was over 30,000 yuan. Commercial building prices hit a new high.