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Case Study | Commercial Areas of Billionaire Royale: Acquisition

Colliers Asia - Case Study - Billionaire Royale Hong Kong

We didn’t just see an investment. We saw bespoke solutions designed to accelerate your success.



Location (City)

Asset Type

Transaction Date

Size (Sqm)

Value (USD)

Kowloon City

Commercial

October 2020

4,023

$58.95 million

 

Buyer: UOW College Hong Hong Kong

Seller: Chinachem Group

Services provided: Acquisition

 

The Challenge


  • Price expectation gap

UOW College Hong Kong (UOWCHK) spent nearly three years searching for a space to acquire for its school premises before identifying Billionaire Royale, with the help of Colliers’ Capital Markets and Investment Services (CMIS) Hong Kong team.

Chinachem Group, owner of the asset, had high price expectations which was based on the highest valuation, and its asking price was beyond what the UOWCHK could finance.

The Strategy

Colliers' CMIS Hong Kong team worked closely with the Colliers Valuations Hong Kong team during the negotiation process with the vendor and advised the acquirer regarding the pricing strategy.  

The Solution

Negotiations with the vendor helped successfully conclude:

  • An acquisition for part of the premises; and
  • The leasing of additional vacant spaces owned by the vendor

This proposed solution was able to fulfil the university’s space and operational requirements for its school, as well as financial constraints.

The Result

UOWCHK and Chinachem were extremely happy with the result. The university was able to secure the long-term premises it needed to start its 2021-2022 academic year while Chinachem was able to dispose of a non-core asset and commit to a three-year lease on the remaining portion.

 

To see what could be the potential of your investment success, connect with our Capital Markets and Investment Services experts today.

Read more of our client success stories and case studies here.

 


Related Experts
Hong Kong SAR China

Stanley Wong

Senior Executive Director

Capital Markets & Investment Services

Hong Kong

Stanley is an industry-leading real estate professional with over 20 years’ experience working in Hong Kong’s property investment market. During this time, Stanley worked as an Executive Director and the former Head of Capital Markets for a competitor from 2012 to 2020 where he handled over HK$20 billion in transaction value

Stanley has a bachelor’s degree in Surveying and an MBA from the University of Hong Kong. Since completing his educational studies, Stanley has continued his professional development to become a member of the Hong Kong Institute of Surveyors and RICS.

Stanley’s transactional background and core skill set includes handling tenders and auctions for major assets such as retail podiums, enbloc buildings, development sites, major shopping centres, grade A offices and luxury residential. He also has experience on property acquisitions and disposal for major developers, investors and end-users in Hong Hong, as well as overseas institutional investors.

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Hong Kong SAR China

Thomas Chak

Executive Director

Capital Markets & Investment Services

Hong Kong

AREA OF EXPERTISE
Being an award-winning industry specialist, Thomas is highly regarded amongst his peers and clients with over 18 years’ property investment experience. The key client focus of Capital Markets remains institutional clients, local investors and developers, family offices and private high net worth individuals as well as PRC inbound capital. 

PROFESSIONAL ACCOMPLISHMENTS

Thomas develops and fosters partnership and consultancy based approaches to clients, resulting in improved profitability through high client retention rates and improved business profile. 

BUSINESS AND EDUCATIONAL BACKGROUND

Thomas has joined Colliers as Executive Director of Capital Markets in July 2019. In a way, this is a homecoming for Thomas as he was with Colliers’ Capital Markets team between 2006 and 2008.  Prior to joining back Colliers, he was with Knight Frank as Senior Director of Capital Markets, where he completed transactions of over HK$8 billion.   

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