Savills Hong Kong proudly announces today the conclusion of the first transaction worth over HK$1 billion in 2008, also the biggest major transaction so far this year.
Savills Hong Kong proudly announces today the conclusion of the first transaction worth over HK$1 billion in 2008, also the biggest major transaction so far this year. Peter Yuen, Savills Senior Director and Head of Investment and Sales (Hong Kong and Macao), said the entire block of the commercial property Trade Square, 681 Cheung Sha Wan Road, is transacted at HK$1.518 billion (approximately US$194.9 million). The buyer is a local family.
Trade Square has a total gross floor area of 521,160 sq.ft. With a transaction price of HK$1.518 billion, the price per sq.ft. is approximately HK$2,913, or around HK$4,000 based on commercial area (excluding the car park).
Trade Square is located between Cheung Sha Wan Road, Hing Wah Street and Hang Cheung Street, with a site area of 46,532 sq.ft. It has 12 floors plus a basement, of which 8 floors are offices, and several floors of car park. The first and ground floors are retail shops.
Peter Yuen said the existing office tenants include a number of major brands. Total occupancy rate is almost 100 per cent. This property generates a monthly rental income of HK$7 million, representing 5.6 per cent yield based on the transaction price.
Raymond Lee, Managing Director of Savills Hong Kong, said, “This is another outstanding contribution made by the Investment Team. I am confident that under the leadership of Peter Yuen, Savills Investment will achieve another year of record-breaking results.” Peter Yuen attributed the success of closing this first major deal of the year to Sharon Fong, Director of Savills Investment saying, “She has demonstrated enormous persistence in servicing the buyer.” He is convinced that the sales teams are all ready to achieve excellent sales during the year.
Savills Investment achieved a record setting year in 2007 with transactions in excess of HK$24 billion (US$3.08 billion). The market share for transactions worth HK$1 billion also reached 60%, a figure that leads the market.