Hong Kong, June 14, 2017 – CBRE
has been appointed as the sole agent for the tender sale of Honest Building,
9-11 Leighton Road, Causeway Bay. The tender will close at noon, Wednesday,
July 26. The asking price for the building is HK$1.5 billion, or HK$31,000 per
sq. ft.
The en bloc commercial
building, located in a prime area of one of the busiest commercial hubs in Hong
Kong, provides a rare investment opportunity. With a 999-year land lease term
and 47,770 sq. ft. in total GFA, the 24-storey building boasts a retail podium on
the ground floor and office space from 1/F-22/F. Current tenants include educational
institutions, beauty centers and fitness centers.
The outer wall and rooftop of
the building is optimal for billboard advertising as it oversees the traffic
cross-section of Mid-levels East, Southern District and Kowloon. Honest
Building is within a 3-minute walk to the MTR and is surrounded by landmarks
including Times Square and Lee Theatre. Occupiers can also enjoy a scenic view
of Craigengower Cricket Club and Happy Valley.
“The demand for commercial buildings in core business districts
is underscored by the recent record-breaking sale of the Murray Road site, which
was won by Henderson Land Development at HK$50,000 per sq. ft.,” said Arthur Yeung, Senior Director, Capital
Markets, CBRE Hong Kong. “The buying spree in Causeway Bay actually started
at the beginning of this year: the Ma Ah Muk family, Hong Kong minibus moguls,
purchased 60-62 Yee Wo Street at HK$600 million, while J Plus Hotel and 14
Pennington Street were purchased for HK$1.7 billion. We believe this tender will
summon ample interest from institutional funds and other investors.”
Honest Building also benefits
from the commercial activity in the surrounding area, which will attract
tenants and optimize rental income. Zing, a nearby Ginza building, is a popular
entertainment and F&B hub occupied by a wide array of lucrative businesses.
An old commercial building on Yiu Wah Street, behind Honest Building, has recently
been acquired by a developer who plans to redevelop it into a Ginza building
with 44,000 sq. ft. GFA. Crowne Plaza, a few blocks down Leighton
Road, is also poised to redevelop into a 22-storey commercial building.
Disclaimer:
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
