SilkRoad Property Partners is including a 5th commercial property to its Hong Kong portfolio after combining block C at the Hang Wai Industrial Centre in the New Territories through a series of deals stated to amount to over HK$ 1.3 billion ($1671 million), according to reports examined by Mingtiandi.
Just months after obtaining a cold-storage structure in Fanling for HK$321 million ($41 million), SilkRoad’s set of offers for the 19- floor residential or commercial property near the Tuen Mun MTR station at 6 Kin Tai Street in Tuen Mun district provides it complete ownership of the 316,530 square foot (29,4065 square metre) 99 year leasehold home as the financial investment supervisor continues to see appealing returns from the city’s commercial sector.
” This acquisition will be our 5th logistics/industrial possession in Hong Kong,” stated SilkRoad’s CEO Peter Wittendorp. “Current tenancy of the sub-portfolio portfolio is 100 percent.”
The purchase of the 40- year-old home takes SilkRoad into Tuen Mun, a standard commercial district near Castle Peak Bay, as sales of whole-block commercial structures in the city increased by 1.4 times last month compared to the exact same duration in 2015, according to a report from Centaline Property Agency
Industrial Asset Addition in Hong Kong
The financial investment supervisor got the Hang Wai Industrial Centre through a set of different deals including its HK$9384 million (HK$ 2,965- per-square foot) purchase of all 17 leasable floorings in the structure from Capital Lake Property Limited, which had actually obtained the structure in 2008, according to its site. Each flooring in the 19- floor structure yields 18,867 square feet.
The business likewise acquired 50 parking areas on the 2nd flooring from the Hong Kong-based investment firm while getting another 187 cars and truck slots from another supplier, with those 2 deals supposedly amounting to another HK$429 million, according to market information and media reports.
SilkRoad’s newest Tuen Mun purchase represents a “structural tilt” in the supervisor’s portfolio, stated Wittendorp. He included that the personal equity fund supervisor’s technique is lined up with the growing e-commerce boom and assisted by a three-year extension of Hong Kong’s revitalization plan 2.0, which is diminishing the stock of commercial structures by motivating redevelopment of older workshops and storage facilities for other functions.
Connecting to Tuen Mun
A conventional commercial district in the New Territories, Tuen Mun, is anticipated to take advantage of enhanced transportation connection, consisting of a $6.1 billion tunnel task which links the location to Hong Kong’s global airport.
” We feel the location will be enhancing even more as the Tuen Mun-Chek Lap Kok tunnel opened in December, which has actually enhanced availability [to the airport],” stated Wittendorp. He included that Tuen Mun is likewise near to the busiest border crossing to Shenzhen and the Greater Bay Area.
In July, Tuen Mun was the website of what still ranks as Hong Kong’s biggest commercial offer this year when a system of mainland corporation China Resources purchased the East Asia Industrial buildin g from Stan Group for HK$ 2.24 billion.
SilkRoad Takes the Industrial Route
About 7 months prior to SilkRoad’s current acquisition, the financial investment supervisor in February included a 4th commercial possession to its Hong Kong portfolio, purchasing the Smile Centre in Fanling, an emerging hotspot for alternative financial investments, for HK$321 million.
SilkRoad in January had actually likewise revealed the last closing of its realty fund, Silk Road Asia Value Partners II (SAVP II), at $549 million, after closing on 6 financial investments for the automobile in pandemic-resistant possessions, consisting of commercial and area retail.
While workplace and retail areas in Central and other high end districts in Hong Kong have actually continued to struggle this year, a few of the city’s less attractive streets have actually ended up being prime targets for worldwide fund supervisors, with Blackstone having actually invested $36 million in July this year to purchase a workshop in Fanling
During that very same month, Boston-based AEW accepted purchase a 50 percent stake in a eastern Hong Kong island storage facility from Hanison Construction for HK$305 million.