Savills Hong Kong announces today that it has been appointed by Chuang's China Investments Limited as the sole agent for the sale of Chuang’s Tower by public tender, with an intended price of HK$1 billion. The tender will be closed at 12 noon on 20th August 2008.
Savills Hong Kong announces today that it has been appointed by Chuang's China Investments Limited as the sole agent for the sale of Chuang’s Tower by public tender, with an intended price of HK$1 billion. The tender will be closed at 12 noon on 20th August 2008.
Chuang’s Tower is a prime Grade ‘A’ office building located at 30-32 Connaught Road Central, Central. It has a gross floor area of 60,587 sq.ft., and comprises 23 floors, with retail shops on LG/F to 2/F (15,937 sq.ft.), and office space on 3/F to 21/F (44,650 sq.ft.). According to Sam Mock, Deputy Senior Director of Savills Investment, the landlord’s intended price for the sale of this prime en-bloc office building is HK$1 billion, which translates into an accommodation value of approximately HK$16,505 per sq.ft.
Located in the heart of the Central Business District, many Grade ‘A’ office buildings such as Exchange Square and IFC are located near Chuang’s Tower. The area is well-served by various modes of transport with the Central MTR station and the Airport Express Hong Kong station conveniently located within a one minute walk. The major tenants are professionals, such as doctors and lawyers, with a monthly rent role amounting to HK$2 million. Completed in 1975, Chuang’s Tower was renovated last year. Providing higher specifications and amenities, a rise in rents has been recorded. One recent example is a 900 sq ft unit on 5/F which leased for a monthly rent of HK$45,000, or HK$50 per sq.ft. Sam Mock expects that after full reversion, the monthly rent role could reach HK$3.8 million.
Moreover, Chuang’s Tower can be converted into a hotel, as approved by the Town Planning Board. After conversion, it can provide 69 hotel rooms on 3/F to 21/F, with rooms ranging from 250 to 533 sq.ft., while LG/F to 2/F can remain for retail use. This approval increases the flexibility of the building’s usage and therefore the buyer is offered much greater potential from the investment.
Sam Mock points out that since the supply of prime office space is limited, the price of strata-title offices in the district remains between HK$18,000 to HK$22,000 per sq.ft. In January, 8/F of No. 9 Queen’s Road Central was sold for HK$250 million, equivalent to HK$18,220 per sq.ft. with a floor area of 13,721 sq.ft. Another sold for HK$293 million, or a price per sq.ft. of HK$22,175 was the whole floor of 79/F, The Centre, with an area of 13,213 sq.ft. In February, part of 20/F, World Wide House, with a floor area of 11,710 sq,ft., was sold for HK$215 million, which translates to an accommodation value of HK$18,360 pper sq.ft.