Foreign fund to sell the property of Sheung Wan Global Building
Foreign funds have had a lot of action in the property market in Hong Kong this year. One of the more active foreign funds, SilkRoad, has spent more than 600 million yuan in the market in the past three months. It also deployed the sale of properties purchased in the early years. A basket of properties at Sheung Wan New Street Global Building, which is held by the fund, is now on sale at a price of about $280 million, which is more than 90% higher than the purchase price in 2015.
Intention 280 million involved 1.4 million 呎
The above-mentioned properties are on the ground floor of Shops A to B, 1st to 3rd floor, patio and rooftop of Global Building, 5 to 13 New Street. The ground floor of Shops A and B is about 3331 square meters. The first to third floors are office buildings. The use of each floor area is about 3,584 square meters, that is, the total construction area of the basket of buildings is about 14083 square meters, accounting for more than 50% of the property rights of the building. The intention price is 280 million yuan, and the price is about 19,882 yuan.
According to the data, the above-mentioned basket of units was purchased by SilkRoad in 2015 for 145 million yuan, and the price was about 10,296 yuan. Based on the current bid price, the purchase price has increased by 135 million yuan compared with four years ago, and the appreciation has reached 93.1%.
In 2015, the tenants were Western restaurants and architects with a monthly rent of $450,000. After SilkRoad purchased the property, it upgraded the tenant mix and leased the entire batch to the shared workspace operator from Shanghai, which has a lease term of 8 years. Since the acquired Hub was acquired by WeWork in the US last year, it is now operating under the WeWork brand.
It is understood that the current monthly rent is $622,000, and the rent is about $44. It is over 38% higher than the old one. The return is about 2.7% based on the selling price.
SilkRoad, headquartered in Singapore, began to purchase high-profile properties in Hong Kong in 2015. Sheung Wan Global Building is an early entry project. The fund also entered the market in April this year, including a 101-million-dollar acquisition of a 12-story office building in Chengliyuan Building, 71 Wenxian West Street, Sheung Wan, which is expected to be a further acquisition. Last month, it purchased a North Point from a multinational company 3M. There are 7 rooms on the 4th floor of the Victory Center on the 15th floor, 5th floor on the 5th floor, 3 rooms on the 6th floor and 3 parking spaces on the 3rd floor. The price is 500 million yuan. In this calculation, SilkRoad temporarily used 601 million yuan to purchase the property in the past 3 months.