HONG KONG, 12 August 2021 – Leading diversified professional services and investment management company Colliers (NASDAQ and TSX: CIGI) is pleased to share that it has advised on the acquisition of a hotel building in the Kai Tak area by Weave Living for approximately HK$380 million. This acquisition demonstrates Weave’s confidence in the outlook of Hong Kong’s property investment and residential leasing markets.
The Hong Kong Capital Markets & Investment Services (CMIS) team of Colliers acted on behalf of both vendor and buyer on this transaction.
Located at 103-107 Tam Kung Road in To Kwa Wan, the property is an 18-storey boutique hotel comprising 99 guest rooms. The property extends to about 30,000 sq. ft. by gross floor area, with a transaction price translating to approximately HK$13,000 per sq. ft. It is conveniently located near the newly-opened Sung Wong Toi MTR Station on the Tuen Ma Line, approximately a five-minute walk from the property.
Russell Lam, Director of Capital Markets & Investment Services, said: “With the government’s plan to develop Kai Tak as part of Hong Kong’s second CBD, we see opportunity for medium-term redevelopment of the area. Given the opening of Tuen Ma Line and the full completion of Shatin-Central Link in 2022, enhanced connectivity and accessibility will likely draw numerous residents into the area, potentially increasing the residential rental demand.”
“Colliers is delighted that we are able to accelerate our client’s success by assisting their portfolio expansion in Hong Kong. Along with this being the second en-bloc transaction we have announced in August, it is also the second acquisition we have concluded with Weave Living in the past three years,” added Lam.
Sachin Doshi, Founder and Group CEO of Weave Living, said: “We are excited to work with Colliers again to complete our sixth property acquisition. Weave is committed to contributing to the continued success of Hong Kong by creating accommodation which meets global standards. With this acquisition, we are set to provide residential options in the Kai Tak area to meet its growing housing demand.”
The co-living sector has proved resilient amid the outbreak of COVID-19. “The pandemic has indeed created a unique opportunity for co-living space operators to expand, with now being an opportune time to acquire assets,” said Sanford Yeung, Director of Capital Markets & Investment Services.
Given limited housing supply and the high rent-to-income ratio in Hong Kong, co-living offers alternative affordable accommodation, especially for young professionals. “From the perspective of investors, there is strong optimism in the market and investment potential for the co-living sector due to its stable income and growth potential,” added Yeung.
To find out more about this transaction, please contact Russell Lam, Director of Capital Markets & Investment Services (9382 2202 / firstname.lastname@example.org) or Sanford Yeung, Director of Capital Markets & Investment Services (9501 8999 / email@example.com).