Savills Hong Kong announces that it has been appointed as the sole agent for the sale of two prime properties in Kwun Tong by public tender, including whole block of Southtex Building at 51 Tsun Yip Street, and workshop No.3 on G/F and private car parking space No.P7 on Basement, Hewlett Centre, No.54 Hoi Yuen Road.
Savills Hong Kong announces that it has been appointed as the sole agent for the sale of two prime properties in Kwun Tong by public tender, including whole block of Southtex Building at 51 Tsun Yip Street, and workshop No.3 on G/F and private car parking space No.P7 on Basement, Hewlett Centre, No.54 Hoi Yuen Road. The tender will close at 12:00 noon on 14th August 2009.
Raymond Ho, Associate Director of Residential Development & Investment, said Southtex Building at 51 Tsun Yip Street is a 22 storey industrial building. The gross floor area is approximately 68,000 sq.ft. It has a low building age and the exterior is in good condition. It will be partially sold with existing tenancies and partially with vacant possession. An estimation of the market value is about HK$160 million.
Felix Lai, Senior Manager of Industrial Development & Investment, said the redevelopment of Kwun Tong town centre is under way, and the development of a new Cruise Terminal at Kai Tak will be started few years later. These will brought about a new face to the district, hence industrial buildings in the district will have great potential for appreciation in value.
The other tendered property is a prime street shop of workshop No.3 on G/F plus a private car parking space No.P7 on Basement at Hewlett Centre, No.54 Hoi Yuen Road. The shop faces Hoi Yuen Road with heavy pedestrian flow. It has a wide frontage of around 40 ft. with high ceiling (16+ ft.). The gross floor area is approximately 7,800 sq.ft. The property is leased by a Hong Kong style cafe and will be sold with the existing tenancy. An estimation of the market value is about HK$160 million.
Raymond Ho noted that the lease modification of the above street shop was completed in early years, and hence it can be leased to a bank. Moreover, Hoi Yuen Road is at the centre of the Kwun Tong industrial district, where many banks have already established branches in the area. Also, it is rare for a prime street shop with a wide frontage which allows high flexibility in layout design.
Peter Yuen, Senior Director and Head of Investment & Sales, said the government has long ago changed the land use in Kwun Tong from industrial to commercial purpose, and encourages the redevelopment of industrial buildings. Now many new office buildings and hotels have been completed, like Millennium City, Landmark East, Kwun Tong 223, and Newton Place Hotel. In fact, a number of Grade ‘A’ office tenants have moved to Kwun Tong from the core area, including the Census and Statistics Department of the SAR government, Manulife, PriceWaterhouseCoopers, etc. He expected that as the new tenants move in, demand for commercial and retail facilities will increase, and therefore retail properties will be benefitted in the long run, with huge potential for appreciation.