Hong Kong's Wen Wei Po News ( Reporter Ngan Lun Lok )Henderson Land put non-core properties for sale frequently in recent years,the Kowloon Building of commercial building which located in 555 Nathan Road, Mong Kok,the news passed that Henderson Land sold it in $2.0 ten billion HKD,and it have been recorded the market 's third-largest commercial transaction amounts after the implementation of the double stamp duty (DSD)which launched by the government,The news passed that the buyers come from mainland capital.The total floor of the property is approximately 113,400 ft,equivalent to the floor price of about $17,639 HKD.
It is known that Henderson Land purchased the Kowloon Building in $9.2 billion HKD in 1994,as calculated by the transaction price of $2.0 ten billion HKD,Henderson Land held the stock for 19 years,got 1.17 times profit. Kowloon Building new the Yau Ma Tei MTR station,completed in 1988,the building at the present site height of approximately 23 floors and a total floor area of approximately 113,384 feet,but it was not built not by the Henderson Land,Henderson Land bought it after the renovation was completed in 2008.G/F-3/F for shops,4/F to 22/F as office buildings,each floor got an area of 4,454 feet,if calculated with the transaction price of $20 ten billion HKD,floor price of $17,639 HKD.Because of a large amount of transaction price,so it is estimated that the new buyers need to pay up to 8.5 % of DSD,which involving in$1.7 billion HKD.
Floor price of $17,639 HKD per square foot
Our newspaper asked Henderson Land about the transaction details,but as of 8:00pm last night still can not see any reply.Retrieve information,the whole block property leasing received $2.8 million HKD last year,if calculated with the transaction price,the return rate of approximately 1.68 % per annum.However,the building will have space for increasing retal price in the future,couple with there are Mongkok Home Band,the CTMA center commercial buildings nearby,so it have potential of becoming ginza-style building.It is understood that the property have also put on sale in form of low-key,then also negotiation of the price of $1.8 ten billion HKD,but due to the fact that intention of the price of more than $2.0 ten billion HKD,so it finally haven't been changed hands successfully.
Although the trading volume of the commercial market have just recorded a few cases this year,but it have recorded transactions which involved in a large amount frequently,the largest amount transaction of which is Manulife insurance purchased Kwun Tong One Bay East,West Tower,the whole block of property from Wheelock and Company Limited in $4.5 ten billion HKD,DSD taxes involved in $3.825 billion HKD.After the property was sold,Wheelock bid the land of TKO 65C1 commercial and residential district in $2.4492 ten billion HKD immediately.And the Henderson Land after five months in silence,bid the land again last Friday,entered the bid of Kwu Tung and Tsing Lung Tau Tsuen Wan site,exactly the same way mode,so the industry estimates that this transaction of Henderson Land is a "changing target".
The news passed that Wheelock sold the property in$5.2 ten billion HKD
As the second largest trading moves Champion REIT bid Citibank Tower,Central GPA over 60,000 feet of commercial space in$2.155 ten billion HKD in April; followed the transaction of Kowloon building by Henderson Land,recorded the third-largest commercial property transactions.Market refers Wheelock One Bay East, East Wing has been approved pre-sales,there are consortium wanted to takeover it in $5.2 ten billion HKD,does not exclude the developers will sell the whole block soon and it is expected that this transaction will refresh the top record listagain. In addition,the Emperor Group purchased the Wan Chai Wing Hang financial center in $1.588 ten billion HKD in form of shell in June this year,due to the fact that transaction in shell form,so no need ti pay any stamp taxes.
In fact,Henderson Land sold a number of non-core rental properties in recent years,included 579 Nathan Road Casa Marina,Tai Po Beverly Hills and No.25 La Salle Road were all sold last year,accounted for $1.715 ten billion HKD of the total sales revenue.
