28/11/2017-1

Midland Shop 196 million purchase Roche Micron five

The Associated Press and Commerce (00459), a franchise for industrial and commercial real estate agency business, announced the acquisition of a 196.5-million-unit industrial building at 5 / F Micron Building in Roche, Kwai Chung for rental purposes and directly involved in the investment property market.

Involving 50,000 square feet to be leased

AP Shop buys 5-8th Floor, 5 / F, Roche Micronesia Tower, 10-16 Kwai Ting Road, 5th floor industrial building on 12 / F and 3 car parking spaces, with a total salable area of ​​about 50,600 square feet for $ 196 million, 3874 yuan, after the acquisition of the property intended for rental purposes.

Land Registry data show that, on the whole site through five layers of property owned by five companies and local manufacturers Laihong Chang Zhan Lili, fully acquired in 2012, each year the cost of 13.8 to 16.3 million yuan, the total purchase price of 76.5 million yuan, holding 5 years profit 119.5 million yuan, appreciation of about 1.6 times.

Midland this year started buying rental property investment, in January (01200) Chairman Huang Chien-yeh purchased 33 and No. 35 Java Road, North Point, the whole block to the Midland Group, the parent companies, valued 400 million yuan, the renovation into service apartments for rent.

The Group pointed out that leasing of properties can provide additional and stable cash flow, broaden sources of revenue and avoid relying on volatile agent commissions.

Return material 4% not urgent sale

Midland Chief Executive Officer Huang Hancheng pointed out, is the second purchase of Roche Micron Property Development Building, now rental return of about 3%, renovation and repositioning plan, expected returns may be increased to 4 per cent, it is not eager for resale. He added that the Group has sufficient cash holdings and will pay attention to any property investment opportunities in the commercial and industrial complex. As regards Grade A commercial buildings, it is “too expensive” and there is no such property yet.