Majority Portion (72.53%) of Chuan Kei Factory Building_Property for Sale

15-23 Kin Hong Street, Kwai Chung, Hong Kong, 00000, HK

Majority Portion (72.53%) of Chuan Kei Factory Building

Asset Description

Chuan Kei Factory Building is a 15-storey industrial building completed in 1977. It is located at the fringe industrial district of Kwai Chung and is within walking distance to MTR Kwai Hing Station and Tai Wo Hau Station with close proximity to large scale residential developments and shopping malls.

The Property for sale comprise Section B on 2/F, 4/F, 5/F, 6/F, 8/F, 9/F, 10/F, 11/F, 12/F, 13/F, 14/F & Roof and 12 Parking Spaces on 3/F. The total approved GFA of the Property is 168,483 sq.ft.

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Attributes

Asking Price

CHF 80,677,000

Building area Gross

15,653 m²

Year built

1977

Property Reference Number

18373089

Media

Investment Highlights

Due to low-base effect, relatively low risk with great capital gain potential for the logistics sector when compared with other investment sectors, in particular for Kwai Chung / Tsuen Wan logistics assets;
Securing the Property on its Existing Use Value basically equivalent to Accommodation Value of sites in Kwai Chung / Tsuen Wan locations providing immediate rental income and future redevelopment potential by agglomeration;
By securing this majority portion, plot ratio relaxation for redevelopment of data centre, cold-storage building, other permitted industrial use, etc. under revitalization policy 2.0 readily achievable by agglomeration of remaining floors with the back-up of potentially lowering of the compulsory sale thresholds from 80% to ......;
Existing layout good fit for logistics purposes;
In addition, legally feasible for self-storage operation under the “Industrial and/or Godown” usage in government lease;
Likely great improvement from its currently fully-let yield of 3.2% on the final strike price acceptable to the Vendor and hence an ideal high-yield investment vehicle.