International real estate advisor Savills has acted as the lead agent on behalf of MGPA, a private equity real estate fund advisory company, in the sale of ten floors of 181 Queen’s Road Central for over HK$1 billion (US$129 million), representing a 4% yield.
International real estate advisor Savills has acted as the lead agent on behalf of MGPA, a private equity real estate fund advisory company, in the sale of ten floors of 181 Queen’s Road Central for over HK$1 billion (US$129 million), representing a 4% yield. This is the largest single property transaction concluded in Hong Kong to date in 2009.
Conveniently located in Central, Hong Kong’s prime financial and commercial district, 181 Queen’s Road Central is a relatively new Grade ‘A’ office building completed in 1999. The major tenants include Urban Renewal Authority and financial institutions like Celestial Asia Securities, BOCI Securities and Guotai Junan Securities. The typical floor plate has a gross area of approximately 15,451 sq.ft.
Peter Yuen, Savills’ Senior Director and Head of Investment and Sales, said a well-known investor Mr Miguel Chang (aka “Taiwan Chang”), has paid over HK$1 billion in acquiring a total of ten floors, most are lower floors with the exception of the 21/F which achieved HK$9,600 per sq.ft. The average transacted price is around HK$8,000 per sq.ft.
“It is no surprise there has been such a robust demand because high yield Grade ‘A’ offices in Central are always favoured by seasoned investors and end users, looking to boost their yield from unproductive cash,” said Peter Yuen.
Robert McKellar, Chief Executive Officer of Savills Asia Pacific, said, “Once again the Savills team in Hong Kong confirm their unrivalled position as the leading investment agents in town. Their ability to satisfy private and institutional clients alike, has led them to become the automatic agent of choice in the Hong Kong and Macau property investment markets.”
Raymond Lee, Chief Executive Officer of Savills Hong Kong and Macao, said, “This transaction once again demonstrates Savills as the market leader in billion-dollar major deals. I am confident that Savills Investment will continue to outperform and achieve wins for our clients in this competitive market.” He is convinced that the sales teams will record excellent sales again this year.