Savills concludes the sale of premium retail units of G/F to 2/F Punfet Building, Mongkok at HK$145 million

Peter Yuen, Savills Senior Director and Head of Investment and Sales (Hong Kong and Macao), said the buyer is Mr Chang, a seasoned investor from Taiwan. As the buyer could pay the full price in cash within a short completion period, he received a major discount on the transaction price, resulting in a high yield.

The transacted property is currently leased by Citibank, occupying shops B-F on G/F and the entire 1/F and 2/F of Punfet Building. The total gross floor area is 8,051 sq.ft..  The lease term lasts till 2011 with a monthly rent of HK$900,000.  The yield is high at 7.4 per cent.

Peter Yuen points out that two months ago the asking price for the property was HK$200 million. During this volatile market, the owner, a local industrial entrepreneur, is willing to lower the intended price. The cash-rich buyer, Mr Chang from Taiwan, grasped the opportunity to acquire these premium retail units as he is positive to the long term outlook of the Hong Kong property market.  The transaction is set to be completed at the end of this year.

The property market has experienced a major correction, the effect of the financial tsunami that has swept the credit markets over the past two months.  Peter Yuen said, with prices of some premium properties already falling to attractive levels, a number of cash-rich investors are actively looking for properties for long-term investment. He expects that premium properties would be actively transacted under this kind of market conditions.