Developers are not core properties

Developers are rushing to cash in on non-core properties and investing in large-scale munitions. New World (00017) has acquired more than 80% of the property’s Xin’an Building in Cannon Street, Causeway Bay, which can be redeveloped into a commercial building. According to the news, the local veteran family Yonglun Group has reached the end with about 2 billion yuan.

A number of large-scale developers, including New World, Wheelock, SHKP (00016), Sino Land (00083) and Henderson Land (00012), have sold non-core properties. It is estimated that property listings have recently exceeded $10 billion.

Can build 85,000 baht commercial buildings

Among them, New World has actively acquired the Xin’an Building in Causeway Bay in recent years. The building is located in Cannon Street and has been collecting ownership since 2015. It is estimated that it has more than 80% of the shares. According to market sources, the property has been rebuilt to attract the attention of the consortium. Recently, it has been offered a bid of about 2 billion yuan for purchase. It is expected to change hands in the short term. The site has a site area of ​​approximately 5,500 square feet and can be rebuilt into approximately 85,000 square feet of commercial space. If the purchase price is 2 billion yuan, the floor price per square foot will be approximately 23,500 yuan.

In fact, the commercial atmosphere in the same district is not bad. The towering project Tower 535 was also rebuilt as an old building. The occupancy rate is now satisfactory. As for the nearby Excelsior Hotel, the owner Wenhua Oriental Group has announced that it will be rebuilt. The project was recently approved to be rebuilt into a 30-storey commercial building with a three-storey basement with a total floor area of ​​684,000 square feet. It will be closed in March 2019. Hotel, reconstruction is expected to take 6 years to complete.

According to market sources, the local family, Yonglun Group or related parties, has the highest demand for property. The group is very active in the Hong Kong investment market this year. It has purchased W Square in Wanchai and 9th floor in Queen’s Road Central, Central. A total of more than 5 billion yuan was involved.

Looking for information, New World has acquired Xin’an Building since 2015, including the purchase of more than 30% of the ownership of 200 million yuan, involving 20 groups. The purchase price ranged from 7.4 million to 14.16 million yuan. In addition to collecting the upstairs property rights, it has successfully purchased a number of ground floor shops, including last year’s 215 million yuan, and purchased four underground plots in the underground of Si Tailiang Anqi. The project is located in the core retail and commercial area, and has a certain reconstruction value, but the scale is not large, so the new world dark disk release project.

Fengtai 3.4 billion to undertake the Devon Australia Mall

In addition to the New World, major developers in recent months have launched non-core property sales, mainly involving shops. For example, Wheelock last month launched its CAPRI, SAVANNAH and MONTEREY shopping malls in the Tseung Kwan O residential estates in South Australia. Ten thousand square feet, which was undertaken by Fengtai Real Estate for 3.38 billion yuan, was the largest trading in the investment market in the past two months.

In addition, this year, Henderson Land was auctioned by Lixin (00488), the commercial building at 8 Observatory Road, Tsim Sha Tsui, which was sold for about $4 billion. It was undertaken by the local veteran family Guanhua Group. As for the new land that has been actively invested in this year, it also sold out the Tsuen Wan Centre store for $275 million last month. In the near future, it has been actively selling the Shimen Commercial Building W LUXE, which has 95% of the units in a month and cashed in about $3 billion.

Other developers have also accelerated the sale of non-core properties. The company has commissioned surveyors to sell Fo Tan Yu Long Shan and Ma On Shan Yin Hu Tian Feng shops with an intentional price of 1.7 billion yuan.