181 Queen’s Road Central (Grand Millennium Plaza, Low Block), Hong Kong
A 26-storey Grade A office building located in the central business district comprising a retail podium and 23 floors of prime office space with a combined gross area of 383,091 sq ft, Grand Millennium Plaza is currently let to a broad range of international tenants.
As lead agent, Savills was instructed to divest the property on a strata-title basis to increase returns over the en-bloc offers the client had received prior to our instruction, and to ensure that no, or the least possible space was to remain unleased after our six-month appointment.
MGPA, a private equity real estate investment fund currently managing US$11 billion in assets throughout Europe and Asia.
What the client said
"We made the right choice in appointing Savills."
Momentum was key – any slowdown could potentially affect sales progress, making it very difficult to dispose of the balance. Therefore, we devised a disposal strategy which ensured a minimum required sale of 35% of the building, which was verbally committed so MGPA would feel comfortable in continuing with the strata campaign. We maintained extreme confidentiality in obtaining the 35% commitment as this amount would underpin the success or failure of the project.
How we added value
We managed to secure an anchor buyer for approximately 35% of the building for USD$133 million. Over 70% of the individual floor buyers were speculators/investors and we convinced them they would turn a profit within 12 months. We provided return models for subdivision of vacant floors for speculators/investors. The result: Savills conducted the most successful office strata-title campaign ever seen in Hong Kong, transacting the entire property within two months for US$542 million in total. Our strata campaign increased returns to MGPA over the en-bloc campaign by some 12%.
Investment & Sales
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