Savills recently sold an industrial site at 15 Kiu Wong Street, Kiu Tau Wai, Yuen Long for over HK$400 million to renowned property developer Billion Development & Project Management Limited on behalf of Francis Law, Toyo Mall Limited.
Savills recently sold an industrial site at 15 Kiu Wong Street, Kiu Tau Wai, Yuen Long for over HK$400 million to renowned property developer Billion Development & Project Management Limited on behalf of Francis Law, Toyo Mall Limited.
Ricky Lau, Deputy Senior Director, Savills said, the site at Kiu Wong Street is situated next to the Tin Sui Wai Station of the West Rail MTR Line and covers an area of around 110,000 sq. ft. Currently standing at the site are four industrial buildings which were built in the 60s and formally used by Tins Chemical Industrial Co. Ltd. of Tin Ka Ping’s family. The total GFA is 160,000 sq. ft., which could be redeveloped into 280,000 sq. ft. commercial & industrial building. Mr Law bought the site for HK$220 million from Savills in 2007, and held the industrial site as a logistics centre to achieve long term investment. It now offers a yield at 3.4 percent.
James Siu, Senior Director and Head of Kowloon Commercial said, Mr Law decided to dispose of the property because he had been actively approached by Billion Development & Project Management Ltd. to acquire the property for a profitable sum. Mr Law started his investment in Yuen Long and Tuen Mun between 2005 and 2008, during the time he invested over HK$600 million to acquire five industrial blocks in the area. Those properties were also converted into logistic centres for long term investment. He has been disposing his properties recently for around HK$1.5 billion.
According to government information, properties in Kiu Tau Wai have been included in the zone for residential and commercial centres in the eastern part of Hung Shui Kiu New Development Area (DCA6), which are to be used mainly for retail and commercial use. Hung Shui Kiu New Development Area covers a site area of 826 hectare, this new development area is to cater to the long-term development needs for housing, social, economic and environmental developments. The property is nearby the Kong Sham Western Highway which allows easy access to Shekou and Hong Kong International Airport via Tuen Mun and to Macau via Hong Kong-Zhuhai-Macau Bridge upon completion of these new infrastructure developments.