Liang Shaohong is bearish 660 million in the sale of the Central Grand Duplex
The performance of the retail market has continued to be unsatisfactory. The rental of the shop in Central has not recovered. It is still significantly below the peak level, which has led some veteran investors to reduce their holdings in the district. The Du Fu Li Street, a multi-storey building in Central, held by Liang Shaohong, founder and chairman of Dahonghui Group, is now offering low-profile market sales with an intentional price of 660 million yuan.
According to the news, the ground floor of the A and B shops on the ground floor of Yefeng Building, No. 2-12, D’Aguilar Street, Central is being low-key. The underground construction area of the shop is about 2,700 square meters, the basement construction area is about 5,680 square feet, and the total construction area is about 8,380 square meters. The intent price is 660 million yuan, and the price is about 78,800 yuan. The shop is adjacent to the entertainment line and is also the only way to the Lan Kwai Fong.
The shop is currently rented by Australian fashion house Cotton On. The brand rented the shop for the first time in 2008. The monthly rent was 1.3 million yuan, and the subsequent rent was twice. The rents have risen steadily. In 2014, the rents climbed to 1.8 million yuan, the rent increased by 500,000 yuan or 38.5%.
However, in recent years, the retail industry has been in a low ebb, and the rents in the core retail districts have not been so brave and even plummeted. When Cotton On renewed the leased site in 2017, the rent has been rapidly reduced to 1.1 million yuan. The rent for rent renewal has not only dropped 38.9%, but also is 15.4% lower than when it was first rented in 2008, reflecting the unsatisfactory retail market.
Li Yongzhen took the lead in the pavilion in the district last year.
According to the Land Registry information, Liang Shaohong bought the upper site from Hang Seng Bank (00011) at a low tide in 2003. The price was only 92 million yuan. If sold at the intentional price, the book value rose by 568 million yuan, an increase of about 6.2 times. Based on the current monthly rent of 1.1 million yuan, the return is about 2%.
Liang Shaohong has been a veteran investor in the industrial and commercial sector. In recent years, he has rarely sold goods. Last year, he launched a basket of 23 shops and office buildings, but did not include the most advantageous locations in Central and Mong Kok. After one year, the sale of the shop in Central was released, which shows that it is cautious about the investment prospects of Central shops.
Another shop investment veteran, Li Yongzhen, has long been pessimistic about the market in Central. In 2018, the ground floor of the Liancheng Building, No. 41, Queen’s Road Central, Central, was opened in 2018 with a total of 4,450 square feet. Close to 100,000 yuan. In 2007, Li Yongzhen purchased the shop for 118 million yuan, holding goods for 11 years, and the book profit was 326.8 million yuan, an appreciation of 2.8 times.