Savills Hong Kong announces that it has been appointed as the sole agent for the sale of majority shares of Cheung Fat Building, Western District, by public tender.
Savills Hong Kong announces that it has been appointed as the sole agent for the sale of majority shares of Cheung Fat Building, Western District, by public tender. The tender will close at 5 p.m. on 16th January 2009.
Gabriel Cheng, Director of Savills Investment and Head of Collective Sales team, said the subject property is located at No. 7-9 Hill Road and has a site area of approximately 13,418 sq.ft. On this Class A site sits a 16-storey high industrial building, with a total gross floor area of approximately 158,173 sq.ft.
The maximum plot ratio is 15 times if the site is used for commercial / hotel purposes. The maximum gross floor area will be 201,270 sq.ft.
Gabriel Cheng said, as development in Central becomes saturated, the spill over effect has greatly augmented the redevelopment potentials of properties in Western District. Therefore, he and his team have been actively working on collective sales projects in the district over the last few years.
Western district is conveniently connected to Central and West Kowloon via Route 4 within 5 to 10 minute drive. The Hong Kong Macau Ferry Terminal is also nearby, and it is easy to travel to and from the airport. In addition to these conveniences, the MTR West Island line is expected to be completed in 5 years, largely adding value to the properties in the district.
With its transportation advantages, a number of hotels emerged over the years with the average occupancy rate up to 90 per cent during peak season. At present, Jen Hotel, Ramada Hong Kong Hotel, Island Pacific Hotel, Courtyard by Marriott, and Central Park Hotel provide a total of over 1,300 rooms. From now till 2011, there will be 6 hotel projects completed, providing an additional 850 rooms. With the huge demand in the market, hotel development still has high potential in the district.
Gabriel Cheng said, a hotel of 600 rooms can be built on the large site of this tendered property. Rooms on the upper floors will be able to enjoy a magnificent sea view of the Victoria Harbour. Moreover, the expected completion time of this project will be almost the same time as when the MTR West Island line is completed and commence operations. Once opened, MTR’s “University” station will just be a 2-minute walk from the subject property.