Savills Hong Kong announces that it has been appointed as the sole agent for the sale of a basket of shops and offices on G/F, 1/F to 3/F, and 7/F to 11/F of Chuang’s Enterprise Building, 382 Lockhart Road, Wanchai, by public tender.
Savills Hong Kong announces that it has been appointed as the sole agent for the sale of a basket of shops and offices on G/F, 1/F to 3/F, and 7/F to 11/F of Chuang’s Enterprise Building, 382 Lockhart Road, Wanchai, by public tender. The tender will close at 12:00 noon on 11th March 2009.
Chuang’s Enterprise Building is located at the junction of Lockhart Road and Marsh Road, along the street popular for many home décor, renovation and design shops. It takes only a five-minute walk to the Wanchai MTR station, and there are many restaurants and bars nearby.
Raymond Wan, Director of Savills Investment, said the subject property amounts to approximately a 55 per cent share of the whole building. It is rare to find such a large scale property currently for sale in Wanchai district.
In this property, G/F and 1/F to 3/F are retail shops. Tenants of the street shops include the convenient store 7-11, a fast food shop and a home décor shop. Shops on 1/F to 3/F are restaurants, and the 7/F through 11/F are offices. The total rental received is estimated at HK$850,000 per month, and the market value of this property is around HK$230 million, with a yield of around 4.5 per cent.
Raymond Wan pointed out that, the property market has stabilized recently, and some investors are looking for opportunities, especially in traditional commercial districts like Wanchai. For instance, Tiffan Tower at 197-199 Wanchai Road was transacted at HK$208 million recently, and Shop C on G/F, Times Tower at 393 Jaffe Road was sold at HK$20 million with a yield of around 4.2 per cent.
He said it is not surprising that Wanchai has become the target for investors as this is a commercial district with large pedestrian flow. Furthermore more, specialty streets like Lockhart Road and Morrison Hill Road, with many home décor, renovation and design shops at the former and numerous lightings shops at the latter, provide good support for rentals.
In addition, the subject property is at the vicinity of Kam Kwok Building and National Building acquired by Henderson Land last year under the Land (Compulsory Sale for Redevelopment) Ordinance. The sites will be redeveloped into a commercial/residential project, with gross floor area of 115,000 sq.ft., and a hotel with gross floor area of 66,000 sq.ft. It is expected that these new projects will further boost the pedestrian flow in the area.