HONG KONG SAR, 2 August 2022 – Leading diversified professional services and investment management company Colliers (NASDAQ and TSX: CIGI) is pleased to announce it has been appointed as sole agent by the landlord for private treaty sale of two prime properties, including an open storage site in Ping Che, Fanling (DD77 Lot No. 796 and Lot No. 1008RP) (Property 1) and multiple units on the 5th floor, Star House, 3 Salisbury Road, Tsim Sha Tsui (Property 2).
Rare investment opportunities to acquire a prime open storage site and prestigious office units
(Property 1) Open Storage Site in Ping Che, Fanling (DD77 Lot No. 796 and Lot No. 1008RP)
Within a 5-minute walk from Ta Kwu Ling Rural Centre Government Building, this open storage site is located in Ping Che, Fanling, New Territories and enjoys direct access from Ping Che Road and Ng Chow Road. This is a rare and well-connected plot currently available in the district with a total site area of approximately 87,481 sq. ft. (measurements are yet to be confirmed), designated as agricultural land under the lease and permissible for open storage by the Town Planning Board. Part of it is used for storage of construction machinery by the original property owner for years and the rest is leased to engineering subcontractors for storage of construction materials. In excellent condition with formation works completed, the site is covered by quaterly waiver letter permitting the storage of construction machinery and materials , with size restrictions to the covered structures sitting atop the land. In recent years, New Territories sees a number of sizable deals of open storage sites, especially large-sized adjoining ones with direct vehicular access from public road, that are highly sought after by local investors and end-users.
There are considerable potential to the property. Applications can be made to the Lands Department for more covered structures with size restrictions for legally leasing out as warehouses (Subject to Government approvals and payment of quarterly wavier fee), which will in turn increase potential rental income considerably.
(Property 2) Multiple units on the 5th floor of Star House, 3 Salisbury Road, Tsim Sha Tsui
Featuring practical layouts and good use of space, these properties include multiple adjoining units (rooms 506-512 and 524-526) with an efficiency over 80%. The 10 units, in which some boast a full sea view and ample natural light, are all put up for sale with vacant possession. With a total gross floor area of about 8,339 square feet, these properties present a golden opportunity for buyers who seek larger adjoining space in recent years. A renowned commercial building in Kowloon, Star House offers high accessibility and convenience with its transportation network and amenities. The neighbourhood is a popular destination from day to night for dining, entertainment, leisure and shopping and is home to major shopping malls such as Harbour City and The Gateway Tower, retail stores of international brands and hotels as well as the Star Ferry Pier.
Russell Lam, Executive Director, Capital Markets & Investment Services, Hong Kong, commented: “A landmark commercial building in Tsim Sha Tsui West, Star House offers traditional, high-quality office space in Kowloon. The building is also widely regarded as a benchmark office investment property in Tsim Sha Tsui, with an abundance of transactions providing liquidity to owners. The other property for sale is an open storage site in Ping Che, Fanling. Conveniently located with direct access via Ping Che Road and formation works completed, the site is with direct vehicular access from public road, located in the “Open Storage” zoning, also covered by quarterly waiver letter from the Lands Deparment for proper storage use. In close proximity to the future new development areas Ping Che and Ta Kwu Ling under the Northern Metropolis Development Strategy, this site embraces great long-term potential as the location gradually matures into one with a decent industrial/residential mix. The two properties put up for sale have a total market value of nearly HK$300 million, potentially attracting a wide group of investors,property developers as well as end-users.
As for the overall investment sentiment, investors are looking for core properties with decent covenant and steady rental growth to hedge against the high inflation brought by supply-side shocks across the globe. After seeing some adjustments in real estate prices in Hong Kong lately, quality properties with stable yields and reasonable growth will be favourably received by the market.”
If you would like to know more about this investment opportunity, you can contact our expert Mr. Russell Lam (9382 2202) or Mr. Manus Lo (9471 1058).
Marketing & Communications
+852 5971 3234
Marketing & Communications
+852 6105 1336