CBRE Appointed as the Sole Agent for the Sale of the Industrial Site at No. 3 Luk Hop Street, San Po Kong, by Submission of Expression of Interest

CBRE has been appointed by the owner as the sole agent to sell the industrial site at No. 3 Luk Hop Street, San Po Kong. The property will be sold through a submission of expression of interest (“EOI”), with closing at 12:00 noon on Monday, 31 March, 2025.

No. 3 Luk Hop Street is ideally located just a few steps from the bustling section of Tai Yau Street in San Po Kong, which is a main thoroughfare in the area. With the completion of Kai Chuen Court and the Tuen Ma Line in 2021, as well as the influx of tenants and middle-class residents into the Kai Tak area in recent years, the local population has significantly increased, driving the demand for properties nearby to change. The San Po Kong area is distinctly different from the traditional industrial zones in Kowloon East, as the surroundings remain vibrant and busy on weekends and holidays. Furthermore, No. 3 Luk Hop Street benefits from excellent transport connections, being just a five-minute walk to Diamond Hill MTR Station, which is an interchange for the Tuen Ma Line and Kwun Tong Line. The station also connects to the Sha Tin to Central Link, with just a quick 20-minute journey across the harbour to Hong Kong Island.

The site has an area of approximately 5,700 square feet and is designated for industrial and / or godown use according to the land lease. Benefiting from the policy to revitalize industrial buildings by relaxing the plot ratio, the plot ratio of this site has been approved by the Town Planning Board to be increased by 20%, from 12 times to 14.4 times for a maximum gross floor area of approximately 82,080 square feet. The foundation works of the site has been completed already and the site has received approval from the Buildings Department to construct a 22-storey modern industrial building. The new buyer can immediately commence construction according to the plans or apply for a lease modification to change the land use for commercial or hotel development, offering high flexibility.

Joseph Wong, Associate Director of CBRE Hong Kong Capital Markets, stated: "San Po Kong is close to Diamond Hill and the Kai Tak Development Area, with surrounding infrastructure and facilities such as Kai Chuen Shopping Centre, Airside, The Twins, and Kai Tak Sports Park completed recently. This has successfully combined various elements of livelihood and commerce in the area, stimulating a rapid transformation of local businesses, with more unique shops and restaurants opening up. Looking at the entire Kowloon East property market, there has been a noticeable influx of capital into the area in recent years. For example, a fund partnered with a local developer to purchase the Penta Hotel Hong Kong Kowloon for HK$2 billion in 2022, which was later transformed into student accommodation. Additionally, last year, a foreign capital consortium acquired two enbloc buildings on Luk Hop Street for HK$987 million, indicating a keen insight into the investment potential of the area."

Joseph continued: " The two industrial properties adjacent to 3 Luk Hop Street still have unused plot ratios, which gives them potential for acquisition and consolidation. The site area can be further expanded to over 16,000 square feet, while also allowing the site to face directly onto Tai Yau Street, thereby enhancing the redevelopment value of the property."

For more details about the property, please contact Joseph Wong, Associate Director (Phone: +852 9752 4618), Jerry Yuen, Senior Director (Phone: +852 9383 0249), or Arthur Yeung, Executive Director (Phone: +852 9088 9168), of Capital Markets CBRE Hong Kong.


 
The Subject: No. 3 Luk Hop Street, San Po Kong