Veteran investor Wan Pak-kuen is said to have sold a two-storey prime retail property in Kowloon at a steep discount to the price levels that had generally prevailed in the area earlier.
Wan offloaded a 1,424-square-foot store on Portland Street recently for HK$57.8 million, or HK$40,600 per square foot, the Hong Kong Economic Journal reported Thursday, citing sources.
The deal marks a discount of about 30 percent when compared to the prices of such properties in the area previously, according to the report.
The store can provide rental return of over 4.7 percent at a monthly rent of HK$225,000.
Land Registry data shows that Wan acquired the store together with an adjacent unit for HK$85 million in November 2011.
Taking into account the profit that Wan booked from the sale of the adjacent unit in 2012, he is said to have gained HK$13.6 million overall on the transaction.
Stanley Poon, a managing director at Centaline Commercial, and Chris Hui, director of agency for development and investment at A.G. Wilkinson & Associates, were both quoted as saying that they expect more properties to be sold at below-market prices due to a weak retail sector outlook.
[Chinese version 中文版]
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