The auction sale under the Land (Compulsory Sale for Redevelopment) Ordinance of the property of Fung Wah Factorial Building, Nos. 646, 648 and 648A Castle Peak Road, Kowloon, through Savills was held at 10am today on the 10/F, United Centre, Queensway, Admiralty.
Hong Kong – 23June 2021 – The auction sale under the Land (Compulsory Sale for Redevelopment) Ordinance of the property of Fung Wah Factorial Building, Nos. 646, 648 and 648A Castle Peak Road, Kowloon, through Savills was held at 10am today on the 10/F, United Centre, Queensway, Admiralty. The site was sold for the reserve price of HK$800 million to Eminence Enterprise Limited (stock code; 616) .
The above property, with a registered site area of about 855.21 sq m (9,205.50 sq ft), is situated on the north-western side of Castle Peak Road, right at its junction with Tai Nan West Street in Cheung Sha Wan district.
Currently erected on the Lot is a block of 7-storey industrial building completed in 1960. It is served by four common staircases. All ground floor units are subject to various waivers which were permitted to be used as shops or fast-food shops/canteens.
The Property falls within an area zoned "Other Specified Uses (Business 1)" under Kowloon Planning Area No. 5 - Approved Cheung Sha Wan Outline Zoning Plan No. S/K5/37 gazetted on 16 December 2016.
Mr. Charles Chan, Managing Director of Savills Valuation and Professional Services, commented, " A number of factory buildings in Lai Chi Kok and Cheung Sha Wan districts have been earmarked for revitalization after compulsory sales, and some of them will become office and retail projects. Fung Wah Factorial Building has location advantage as it is situated at a core business area in Cheung Sha Wan, which is attractive to developers."
Mr. Chan added, "The demand for logistics / storage properties surged due to the pandemic. Recently transactions of industrial properties of smaller floor size yielded good results at relatively higher unit price. Developers' interest in industrial buildings redevelopment is also helped by the government's pilot scheme for charging land premiums at standard rates, which gives investors much clarity and certainty on land premium calculations and allows them to better estimate the total investment costs. We believe Mainland developers remain interested in land acquisition by means of compulsory sales as it is the major channel for them to acquire sites in urban areas."