Press Release

CBRE Advised China Overseas in Sale of a Basket of Properties at Horae Place In To Kwa Wan

CBRE Capital Markets team has concluded the transaction of a basket of properties at the retail podium of Horae Place, No. 209 Ma Tau Wai Road in To Kwa Wan.

September 14, 2022

Hong Kong, 14 September 2022 – CBRE Capital Markets team has concluded the transaction of a basket of properties at the retail podium of Horae Place, No. 209 Ma Tau Wai Road in To Kwa Wan [Horae Place hereafter]. The transaction involves two basement floors, G/F, 1/F and 2/F, as well as 42 carparking spaces. The portfolio, with approximately 40,000 sq. ft. of total floor area of retail space, was sold for HK$425 million at about HK$8,500 per sq. ft. after deducting the carparking space value. Based on the current rental income, the buyer’s return goes beyond 4%. 

Horae Place is located at the junction of Ma Tau Wai Road and Tam Kung Road, the core area of the To Kwa Wan District. Tenants of the Property are predominantly neighbourhood-focused retailers, including a Chinese restaurant, education centre, gaming arena for kids and beauty shop, while the street shops are leased to a fast-food chain and an optical shop. Horae Place offers a stable occupancy rate. The Property was owned by the developer, China Overseas Property, for leasing purposes  and is now been sold for the purpose of property portfolio consolidation 

The Purchaser, Fairland Holdings, is renowned for developing Fairview Park in Yuen Long and Hong Lok Yuen in Tai Po from the 1970s to 1990s. The Group continues to develop its capabilities in value-add projects, with a focus on refurbishing and repositioning commercial properties in Hong Kong. The Group strives to transform projects through meaningful design, and to manage quality properties that serve the needs of growing communities. Fairland previously acquired two commercial buildings for refurbishment and repositioning, namely 124-126 Castle Peak Road in Cheung Sha Wan, and 25 Tong Mi Road in Mong Kok. These two properties are being upgraded to become the lifestyle hubs for these respective growing neighbourhoods. With a total investment value of HK$350 million, the projects will be rebranded as part of the ‘SPARK CITY’ lifestyle building series.

CBRE Capital Markets assisted China Overseas Property in the disposition exercise of its non-core assets. Daniel Mok, Senior Director, Capital Markets Hong Kong mentioned that, “The Project Team is confident to be appointed by the Vendor to handle this transaction. The team also completed the transaction of Downtown 38 in To Kwa Wan area last year. During the pandemic, neighbourhood shopping centres became more sought-after given that local consumers will be eager to spend in neighbourhood districts for necessities. While mall tenants enjoy stable shoppers flow and business profits, the tenant mix becomes more diversified. Following the announcement of the Fed rate hike, institutional investors become more cautious in property acquisition; When compared to other volatile investment markets, property investment can offer stable returns and rental income amid high inflation and remains the preferred investment option among mainstream investors. The Fed rate uptrend will certainly add financial implication to property owners; however, farsighted investors with sufficient funds will sough for more opportunity in the pullback market after considering investment returns and interest rate hikes.” 

“This transaction is a good opportunistic investment for the purchaser to secure a stable return on its on-going rental income. The transaction was completed within a short period of time, reflecting investor confidence to the commercial properties supporting by neighbourhood communities as well as CBRE’s considerable expertise in providing consultancy services for investment projects,” he added. 

Since the beginning of 2022, CBRE Capital Markets team has completed transactions with a total value of approximately HK$8 billion.

Photo 1: Horae Place

Photo is for reference only


Property Advertising Number: CBRE-CM-ADV3959


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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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.