Project Details
Instructing Party:
Vendor: Jardine International Motors
Purchaser: Link REIT
Location: 1/ No. 50 Po Loi Street, Hung Hom
2/ No. 60 Ka Yip Street, Chai Wan
Consideration: HK$5,820,000,000
Size: 859,752 SF approx. (GFA)
Background
Jardine International Motors decided to dispose of some of their properties as part of an asset rebalancing exercise. This included the two buildings currently being used as 4S Car Park / Car Service Centres by Zung Fu, a subsidiary of the Jardine Matheson Group and the only Mercedes Benz dealer in Hong Kong. This is by far the largest disposal of the group’s Hong Kong assets in recent decades and they took a very cautious approach to the sales process.
The challenges
As a multinational conglomerate with a significant allocation in real estate, Jardine had two main considerations:
1. to retain a long-term occupation for the 4S Centres’ operations; and
2. to sell at price that would maximize the Group’s interest while avoiding a sense of “divestment from Hong Kong” given the socio-political sentiment.
How we realized potentials
In 2021, CBRE formed a dedicated project team combining talent from Capital Markets and A&T Industrial & Logistics Services. The new team quickly grasped the client’s long-term occupational needs and structured a sale and leaseback proposal to meet those goals. After an intensive six-month marketing campaign, they locked in a buyer. Link REIT is to acquire 100% interest in the two assets – the largest industrial deal of 2021 in the Hong Kong real estate market.
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