Savills is pleased to announce the completion of the HK$1.3 billion acquisition involving On Yam Shopping Centre and its carpark, and Shek Wai Kok Commercial Centre and its carpark
The transaction was between Mr. Hugo Lin and Mr. David Chan, the purchaser, and the family of the late Mr. Tang Shing Bor, the vendor, for HK$1.3 billion. The acquisition was facilitated by Savills and involved On Yam Shopping Centre and its carpark, and Shek Wai Kok Commercial Centre and its carpark. The vendor acquired the two shopping centres through Savills back in 2016 from Link REIT, and the properties were sold at a premium in the latest transaction.
On Yam Shopping Centre is situated at 7 On Chuk Street, Kwai Chung, with a GFA of over 40,000 sq ft in addition to 355 car parking spaces. Shek Wai Kok Commercial Centre is situated at 3 Shek Wai Kok Road in Tsuen Wan, with a GFA of over 132,000 sq ft and comes with a total of 578 car parking spaces.
Early this year, Savills facilitated the disposal of Hing Tin Commercial Centre for Mr. Lin and Mr. Chan which garnered a profit of more than 100% for them. The occupancy rate of both On Yam Shopping Centre and Shek Wai Kok Commercial Centre is close to 80%, generating a stable stream of rental income with a yield of 4.9%. The car parking spaces provided by the two properties gives extra appeal to investors.
Mr. Peter Yuen, Managing Director, Head of Investment & Sales of Savills commented: "The strong performance of non-discretionary retail in recent years attracted investors' attention to retail properties in non-core areas. The purchaser is experienced in transactions of local shopping centres and has plans to commit up to HK$200 million in the renovation of the properties, which will have major benefits for the local communities as well as improving the rental prospects."