How a Hong Kong property investor still made HK$237 mil — after a 40% price cut
The first and 2nd floors have been leased since May in 2025 to century-old restaurant Lin Heung Tea House for about HK$ 250,000 a month, equivalent to approximately HK$ 23 psf.
The sale notes the second major disposal by Ng in recent months.
In June, he marketed the entire nine floor of Far East Money Centre in Admiralty for around HK$ 165 million, depending on to Land Registry information. After holding the estate for 18 years and minimizing the asking price by as much as 38%, he earned a profit of just about HK$ 11.2 million or roughly 7%.
Edwin Lee, owner and CEO of Bridgeway Prime Shop Fund Management, stated the transaction involved a huge portfolio with a significant complete worth, yet the psf-price was relatively reduced since it was hard to find a purchaser for the whole bundle.
The ground-floor occupant is cha chaan teng operator Lok Tin Cafe, while the cellar is rented to mainland Chinese karaoke chain Mei KTV.
They are presently leased to a noodles restaurant.
According to Chinese press reports, Ng had actually lengthy owned more than a dozen commercial properties in Tsim Sha Tsui, including assets on Cameron Road and at Haiphong Mansion.
The seller, low-profile financier Ng Kan-hoi, had actually formerly detailed the assets for a combined HK$ 430 million before lowering the rate by 40%.
Amidst concerns over climbing rates of interest and a weak retail property market, a long-time capitalist has sold a portfolio of prime street shops in Tsim Sha Tsui– held for more than four years– and secured a profit of close to HK$ 237 million ($38.6 million) in spite of accepting a deal greater than 40% beneath his primary asking cost.
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After having the assets for more than 40 years, he understood a gain that was roughly 12 times his original investment.
Additionally, Shops 6-10 on the ground floor of Wing Lee Building at 27-31C Kimberley Road, with an overall gross ground area of regarding 2,731 sq ft, cost HK$ 54 million, mirroring a cost of concerning HK$ 19,773 psf.
Those assets were eventually sold for HK$ 202.8 million, or concerning HK$ 9,273 psf.
Ng acquired the estates for a combined HK$ 19.84 million in between 1979 and 1987, throughout the strained Sino-British negotiations over Hong Kong’s return to mainland Chinese rule and a stock market depression that pressed residential property rates to depressed amounts.
“When the industry was booming, you might not have actually managed to purchase these retail outlets also for HK$ 600 million or HK$ 700 million,” Lee added.
The portfolio of market shops in Cheung Lee Commercial Building and the podium of Wing Lee Building, both on Kimberley Road, switched hands for HK$ 256.8 million, according to Land Registry data.
The properties included the basement and ground, first and 2nd floors of the Cheung Lee Commercial Building at 25 Kimberley Road, with an overall gross floor location of concerning 21,871 sq ft.
