Hong Kong's Wen Wei Po News (Reporter Leung Yuk Cum)The veteran developers Hip Shing Hong Group which has developed for 65-years invested more than a billion dollars on Shui Fu Sheung Commercial Building in Sheung Wan,CRE Building in Wan Chai,Go Up Commercial Building in Mongkok and HSH Mongkok Plaza which involved in 160,000 feet floor in the recent years in order to changed into Serviced Office "Office Plus",it will provide 250 units in total,after converted ft rent will elevate about 60-70% when compared to the neighboring offices.Meanwhile,the Group has considered put Good Prospect Factory Building in Wong Chuk Hang for rental,providing spaces for students in order to solve their problem on no place for study.
Hip Shing Hong Group Managing Director David Fong noted that such "Office Plus" diversified units,turnkey renovation with even a single
lease and full office furniture as selling points,by 2 to 18 office workplaces monthly rent from $ 9,000 to $5,5000 HKD.As for the entrepreneurs they can't estimate about the business,therefore will provide them six months to two years flexible rental period,expected the rental yield 4-5%.Such unitsfrom got only two in 5 years ago,while extending till the end of this year,there will have a total of 250
partners,the current occupancy rate close to 90%,is expected to increase to 370 partners by 2015.Shui Fu Sheung Commercial Building in Sheung Wan for example,modified sq.ft Rent to $35 to $37 HKD,and compared to general commercial buildings of Ft Rent $20 to $23 HKD
difference of 60-70%.
Serviced commercial buildings get the rate of return of 5%
He said that there are four commercial buildings converted the floor buildings from 60% to full range to "Office Plus"at present,long-term plan is to have whole conversion on these four commercial buildings,and Shui Fu Sheung Commercial Building in Sheung Wan began to have"The Collab"integrated conference room rental services this year,which will provide for SMEs and entrepreneurs for a meeting,and it will be gradually extended to other three commercial buildings in the future.
As for Wong Chuk Hang Road 33-35,Good Prospect Factory Building,revitalization of industrial buildings,he pointed out,the group considering the introduction of "Office Plus" and "The Collab",will also be considered to rent for secondary school students in revision in order to solve the problem of vying for positions in the library. He also said that,following the Good Prospect Factory Building leased to the Arts Development Council at low rents of $10,000 HKD,there are also other non-profit organizations who wish to rent,involving about 5,000 feet of the floor,the rent shall not be less than the Arts Development Council,the entire industrial building approximately 240,000 feet of floor,the floor is leased to non-profit organizations will not be more than 10%.
As for the group's development plans,David Fong said the group have six residential buildings,industrial buildings and hotel projects in the developments,which include Shau Kei Wan Main Street East,No. 21-27 residential projects under construction,has been named Le Riviera,it is expected to put up for sale in form of existing buildings in the third season of next year.
Shau Kei Wan residential property may launch next year
As for the cooperation with New World Group North East New Eastern Terrace residential projects,floor feet up to 400,000.And No.27-29 Hing Yip Street in Kwun Tong which under the group,he pointed out that since the Kwun Tong industrial buildings change into commercial buildings becoming exorbitant premium,so it will be converted into a modern industrial buildings,floor feet of 120,000.In addition,Wong Chuk Hang Good Prospect Factory Building industrial buildings will changed into Revitalization of industrial buildings; project which cooperation with Henderson Central Gateway Plaza Shopping Center in Wong Chuk Hang has sold 80%.
The Group also foray the boutique hotel,located in No.53-55,Central Hollywood Road,construction of development Madera Hollywood,which will provide 40 rooms.
