27 August 2012
Valuable office investment opportunity with high efficiency in core Central
Colliers International has been appointed as the sole agent to offer the whole of 6th floor of World Wide House (the Property) for sale by pubic tender. The tender will close at 12 noon on 19 October 2012.
The Property comprises a total gross area of about 16,693 sq ft with nice seaview. It is to be sold on an “as-is” basis with the existing tenancy.
Sitting at 19 Des Voeux Raod, Central, World Wide House, the 29-storey Grade A office building is located at the heart of Hong Kong’s CBD and enjoys excellent convenience. Its surrounding streets include Connaught Road Central, Pedder Street and Des Voeux Road Central, which are home to Grade A offices, high-end retail outlets and eateries. Other landmark buildings include The Landmark, Chater House and Alexandra House, etc.
In addition, with the Central Elevated Walkway, World Wide House is interconnected with prominent landmark properties, such as International Finance Centre and Exchange Square, and first-class hotels in the sub-market.
According to Reeves Yan, Director of Investment Services at Colliers International Hong Kong, investors are generally in favour of office spaces for strata-title sale, of which Grade A offices in Central are generally the preferred. Properties of such are a rarity and are currently only available in two buildings – World Wide House and 9 Queen’s Road Central. As the Property on 6th floor of World Wide House comprises an efficiency ratio of over 85%, which is higher than 65-70% in the comparable buildings in the sub-market such as 9 Queen’s Road Central and Lippo Centre, its attractiveness is unrivalled in the market.
Yan added that owners of strata-title office units in Central Grade A office buildings rarely offer their properties for sale, resulting in limited transactions at high price levels. For example, the 12th and 13th floor of 9 Queen’s Road Central were sold at HK$27,000 and HK$26,600 per sq ft, respectively, in 2011, and the en-bloc 50 Connaught Road Central fetched HK$4.88 billion (or HK$27,810 per sq ft) this year, set new benchmark office prices in Central. “In World Wide House, the last strata-title transaction was the sale of Unit 01 on 21st floor for HK$25,600 per sq ft in September 2011. I am confident the 6th floor offered for sale in the building will attract many investors’ attention,” said Yan.
Looking forward, Yan predicts that there will be very limited Grade A office new supply in Central over the next three years. “CCB Tower, located at the site of ex-Ritz Carlton Hotel and expected to complete at the end of 2012, is the major new Grade A office supply in Central in the near future. Despite a total floor area of 170,000 sq ft, at least half of the spaces are expected for self occupation by the building’s developer - China Construction Bank - thus leaving limited supply available to the market.”