The consortium purchases 30,000 yuan for the acquisition of old buildings in Causeway Bay Linhai
The Linhai section can be difficult to find, attracting developers to acquire at high prices. According to market sources, the former Victoria Harbour and Causeway Bay Hai Palace Building at 264 to 269 Gloucester Road were awarded by the consortium at a price of approximately RMB 30,000 per real estate, which is comparable to the purchase price of the old building in Western Mid-Levels. According to a surveyor, there are commercial redevelopment potentials in the lot, and the consortium is optimistic about the commercial outlook. It will be a long-term lease for the redevelopment of commercial buildings.
Ming Pao reporter
Purchase price exceeds 70% of second-hand property price
Causeway Bay is a core area and developers have been watching the above prime locations. The Excelsior Bay Causeway Bay Hotel, which was put up by Mandarin Oriental last year, had been approved by the Buildings Department to reconstruct a 26-storey commercial building above the 4th floor basement as early as 2015. The total floor area was approximately 684,019 sq. ft., attracting leading developers such as Xindi ( 0016) and so on, but Mandarin Oriental eventually withdrew and shelve the sale. The auction of Excelsior Hotel with a market value of about RMB 30 billion has temporarily come to an end. However, developers are still actively looking for development opportunities in the region.
The Causeway Bay Hai Palace Mansion, which also enjoys the view of a permanent full harbour, is just across the street from the MTR Causeway Bay Station. It is 52 years old and involving 168 gangs and 5 ground floors due to geographical advantages. The consortium was favored by the consortium’s bid price of approximately RMB 30,000 per acquisition, and the acquisition price was comparable to the approximately RMB 29,500 to RMB 32,000 in Emerald Garden on Robinson Road in Western Mid-Level, which is currently being acquired by Henderson (0012). According to the Land Registry, Hai Gong Mansion recorded a transaction a few months ago. A low-rise and practical 717-square-foot B room changed hands for 12.5 million yuan and 17,434 yuan. In other words, the consortium’s acquisition bid is more than 70% higher than the market price.
High limit in the area is relaxed to 135 meters
In fact, the seascape advantage of the old buildings along Cannon Street and Gloucester Road has always been the goal of the developer’s acquisition of the number one target. In addition, in January this year, the Planning Department relaxed the building height restrictions in the Causeway Bay Outline Zoning Plan, which led to Gloucester Road. From 110 to 130 meters, the commercial area was relaxed to 135 meters, which increased the value of the reconstruction projects in the area, thus contributing to the acquisition of the consortium.
According to statistics, the Tiansheng Group acquired the property from the lot as early as in 2011, including the Haidian Mansion next to the World Trade Center. It was reported that Tian Sheng’s purchase price per real estate was less than RMB 20,000 at the time and eventually shelved the acquisition without being accepted by the building owner. . The Xinan Building at No. 20-28 Jinglong Street was actively acquired by New World (0017) or related parties since 2015. In 2017, it was even more aggressively handed over RMB 215 million to buy approximately 2,600 squares from the sponsorship of the gambling king Stanley Ho, the company’s subsidiary. Shop. As of now, New World or related parties already hold more than 60% of the Xinan Building title.
7 years ago, Tian Sheng lost less than 20,000 to buy Haidian.
Zhang Shengdian, director of the Corporate Development Department of Vale Group (Valuation and Property Management), stated that the residential area along Jinglong Street is mostly residential and commercial property. The acquisition at a price of RMB 30,000 is undoubtedly “amazing”, but if it is calculated together with business elements, The price is more reasonable. If the developer can achieve commercial development after successful reunification of ownership, the plot ratio can be up to 15 times. Under the current upward trend of commercial property rentals, the above-mentioned Causeway Bay site has more reconstruction value.