Central Center 40.2 billion hands breaking record
The newspaper first reported in mid-month last month that Cheung Kong (01113) sold its 75% interest in Central Central, 99 Queen’s Road Central, for $ 40.2 billion. The transaction was finally implemented and has become the highest single-unit commercial transaction in Hong Kong.
Cheung Kong real estate sales benefit 14.5 billion
Cheung Kong announced yesterday that it has disposed some of the commercial, office properties and parking spaces in the Central Center held by it for a cash consideration of 40.2 billion yuan. According to the book value of the property in this year’s interim report, the proceeds from the sale will be about $ 14.5 billion. Cheung Kong holds a 75% interest in the Central Center, involving 1.22 million square feet of floor, it is estimated that the transaction average price of nearly 33,000 yuan per square foot, Cheung Kong Executive Director Zhao Guoxiong said the sale price is satisfied.
In response to the transaction at Central Central, a Cheung Kong spokesman said: “Buying and selling real estate is our company’s business. Our daily operations are for sale by the government on a piece of land. Many Hong Kong companies sell their properties to mainland enterprises today Is a very common matter. There are no sellers. How can new channels for international and mainland money come to Hong Kong? ”
The purchaser for Central is “China, Hong Kong, Macao and Taiwan Pacific Development Asia Properties Limited”, a company incorporated under the laws of the British Virgin Islands. It is learned that its major shareholder is China State Energy Corporation, a 55% interest. The remaining 45% are held by a group of investors active in the commercial and industrial property market in Hong Kong in recent years, including King Tapes Chan Pok Chi, Choi Chih Chung, Lo Chu Hung and “Minibus King” Ma Ya Mu. China National Energy Storage and Chemical is the largest shareholder of the transaction and will own the naming rights of the property in the future and will have more than 20 floors for its own use. The floors held by other investors are tentatively inclined to consider the sale after the transaction.
State Reserve Energy and Chemical lead buy
Lam Hau-wen, a senior director and head of valuation and consulting department at Knight Frank, pointed out that the current office market is fiery and the standard fare for district office buildings in Central has already exceeded $ 38,000. As a result of the large silver center in Central and not for sale, reasonable. In his opinion, there are a lot of parking spaces in the Central area. According to the current market conditions, the value of each parking space will exceed $ 4 million. Even if new buyers sell in separate car parking spaces in the future, they can also obtain substantial capital returns. The center of the Central changed hands and expected to benefit the Central and Sheung Wan office market. It is estimated that the number of office transactions in the next 6 to 12 months will increase and the cost of construction will soar.
Xiaodian Liang, the managing director of DTZ Hong Kong, believes that the huge turnover of the center in Central China will have a positive stimulating effect on the overall market of commercial buildings. He mentioned that at present, the rate of salaries per square foot of the gross floor area of the building is more than 70 yuan. Based on the transaction price of $ 40.2 billion, the rate of return has already exceeded 2.5%, which is at a market-reasonable level.
The newspaper reported in mid-month last month that the Central Center sold about $ 40.2 billion. The buyer planned to offer 35.7 billion yuan to buy in October last year, but it is reluctant to sell for a long time, the final price increases 12.6% reach a deal.