Savills Appointed Sole Agent for the Sale of a Prime En-bloc Building at 375 King’s Road with an Indicative Price of HK$250 million
09 August 2023
The property is a 14-story commercial and residential building with a total gross floor area of approximately 18,310 square feet and a site area of about 1,576 square feet. It is fully leased, with a pharmacy on the ground floor, a foot spa and massage shop on the 1st floor, and a chain hostel from the 2nd to 13th floors. As the tourism industry bounces back, there has been a significant surge in demand for lodging, leading to a continuous increase in the rental income of the hostel. However, the lease for the hostel is set to expire in the middle of next year, and the options are to renew or hand over the property.
The property is located on the bustling King's Road, with a comprehensive range of amenities and high pedestrian flow. It is only a 4-minute walk to the North Point MTR station and enjoys excellent connectivity with major traffic arteries such as the Central–Wan Chai Bypass, Island Eastern Corridor, and Kwun Tong Bypass. There is also a tram station nearby and multiple bus routes that connect to all districts, and the airport.
Ms. Yubi Leung, Senior Associate Director, Investment of Savills, stated, "The development of the North Point area has been rapid in recent years. The shops at No.1 – 2 at 400 – 404 King's Road nearby were sold for over HK$140 million in July this year, at a price of about HK$51,000 per square foot. The indicative price for the property being sold this time is HK$250 million, with a market price per square foot of about HK$10,303 for the 1st to 13th floors, and the rental return of the whole block of building is about 3%. The property can be purchased by transferring company shares.
Currently, the supply of en-bloc building in the same area is extremely limited, especially for properties that can operate hostels, which are in high demand. Moreover, sites with potential for combined development are even more rare. Besides, the massive redevelopment project of the State Theatre nearby is expected to have a synergistic effect in the area, making the outlook promising. This presents an opportunity that end-users and investors should not miss."
