Project Details
Client Represented:
Instructing Party: Local investor
Purchaser: Storhub
Location: Victorious Factory Building, NO. 33A-37A Tseuk Luk Street, San Po Kong
Total Consideration: HK$182,000,000
Size: Total 44,744 sq. ft. with 2 parking spaces
Background
Storhub is a Singapore based self-storage operator in the process of expanding its real estate portfolio in Hong Kong. With CBRE’s assistance, Storhub recently acquired 45,000 sq. ft. of industrial floor area with two parking spaces at Victorious Factory Building – a very rare find in this area, and the third Hong Kong assets purchased through CBRE.
Challenges
The deal took almost six months to complete. From 2021’s economic bounce back to the outbreak of the fifth wave of COVID-19, there were myriad unpredictable market challenges. CBRE Capital Markets team faced all the challenges head on and, eventually, both parties agreed on the price and terms and conditions.
Another significant hurdle to overcome was the fact that the property has been sub-divided into more than 20 units, fully leased to different parties. CBRE managed to settle all tenants’ technical due diligence in three days.
How we created an advantage
Both the Purchaser and Vendor felt very confident throughout the process thanks to CBRE’s extensive market knowledge of the area. In working closely with both parties, the Team provided accurate advice and extensive assistance on every technical issue, settled all disagreements on contracts, and carried out inspection and logistic arrangements in timely manner.
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