Taichi CMB North Point Jiaxia 4.75 billion Yizhu Every 15,700 Buyers Huihui Capital Consortium
The rents of Grade A office buildings in Hong Kong continued to record highs, stimulating the owners of commercial buildings to take advantage of the sale of their properties. Swire Properties (01972) and China Motors (00026) (hereinafter referred to as CMB) each holding a half-owned Grade A commercial building at No. 625, King’s Road, North Point, has just received a $4.75 billion purchase from a consortium led by Keye Capital, with a price of 15,777 yuan. . In the past three years, Swire Properties has sold a total of three commercial properties, which are worth 23.903 billion yuan in terms of holding interest.
Swire Properties, a subsidiary of Swire Pacific (00019, 00087), announced that it will sell a 50% interest in No. 625 King’s Road, North Point to the buyer, Jacko Rise Pte. Ltd., for a total of $2.375 billion. The 50% interest in amateurs is held by CMB and will be sold to the buyer at a price of $2.375 billion. However, the two transactions must be completed at the same time to be effective. As for CMB, it must obtain shareholder approval on or before September 16 this year, otherwise the sale will be automatically terminated.
Taidi three-year sales of 3 commercial buildings 2,39 billion
A spokesperson for Swire Properties said that the sale of non-core assets will allow funds to flow. The proceeds from the Disposal will be used for the general working capital of Swire Properties, which will help the company to promote new developments and major investment projects in the core market, including a $15 billion investment in the construction of two commercial buildings, Taikoo Place, Quarry Bay, and Taikoo Place II. The Taikoo Place Redevelopment Project, the expansion of the Pacific Place in Admiralty, and the new project in Shanghai’s Foreshore. Swire Properties continues to invest in the development of Hong Kong business, and this long-term development strategy remains unchanged.
625 King’s Road is a 26-storey Grade A commercial building. It was developed by Swire Properties and China-Pakistan. It was completed in 1998. The floor area of each floor is about 11,800 square meters. The total floor area of the building is 301,065 square meters. The transaction price was 4.75 billion yuan, and the price was 15777 yuan. It is understood that the new buyer is the consortium led by Gem Capital. The current average rent of the building is about 40 yuan and the rental return is about 3%.
Market participants pointed out that the property has not been put on sale in the market, and it is expected that buyers will purchase it. Since 625 King’s Road is not located in the Taikoo Place business district, there are no well-known large enterprises to rent, and the project rent is at least about 40% lower than the rent of 65 to 75 yuan at the Island East Centre in Taikoo Place.