Ronghua Bakery’s 37 million purchase of Castle Peak Road
The old Chinese cake shop Ronghua cake shop has a rare shop, just spent 37 million yuan to buy a ground floor in Qingshan Road, Cheung Sha Wan, the price of about 34,000 yuan.
The shop purchased by Ronghua Cake House is located at Shop N, G/F, Wing Lung Building, 220-240A Castle Peak Road, Cheung Sha Wan. The construction area is about 1100 square feet. The transaction price is 37 million yuan and the price is about 34,000 yuan. The shop is currently rented by glasses shop. The monthly rent is 68,000 yuan and the return is only about 2.2%. The lease will expire in August this year.
It is understood that Ronghua Bakery currently has a branch in the ground floor of No. 300 Qingshan Road in the same district. According to the Land Registry, the branch is a self-owned property. In 1988, Ronghua Cake House purchased the whole floor of a four-story building for 4.7 million yuan. However, in recent months, a Chinese-funded consortium has acquired an old building from 300 to 306 Qingshan Road. The market estimates that Ronghua Bakery will soon be the branch of the store, so it may be the first to purchase the same lot of shops as a new branch.
In addition, the ground floor of the Friendship Building, 501-511 Kwai Chung Section, Castle Peak Road, Kwai Chung, has a total gross floor area of 6,633 square feet and was sold for about $53 million. The price is about $8,329. The shop is now leased to 4 tenants, with a monthly rental income of 133,000 yuan and a return rate of about 3%.
According to the data, the former site was originally held by senior investors Chen Bingzhi and Luo Zhuxiong. In 2015, the company entered the market with a price of 41.8 million yuan. The goods were sold for 4 years, and the book profit was 11.2 million yuan, an appreciation of 26.8%.
Li Genxing, the founder of Shenghui Retail Fund, disclosed that he spent 12 million yuan to purchase the No. 2 shop, Peony Building, No. 55-65A, Tai Kok Tsui Road, Tai Kiu Tsui, with a floor area of 350 square feet and a price of about $34,000. The property has a rental income of 22,000 yuan and a rental return of about 2.2%.