Causeway Bay sites fetch lowly $1.28b

A basket of properties that has high redevelopment potential in Causeway Bay was sold for HK$1.28 billion in early October, 28 percent lower than the market valuation of HK$1.8 billion.

Owned by the Chan family of Ying Kee Tea House (8241), investors Cheung Sut-Loi and Cheung Ling-chau, the properties consist of four retail shops and 16 flats at the junction of Lee Garden Road, Percival Street and Russell Street.

A tender was launched in August for the 20 properties sitting at the junction of 23 to 25 Lee Garden Road and 72 to 74 Percival Street.

Located on first-tier shopping streets in Causeway Bay, the properties represent over 20 percent ownership shares on the building lot.

New World Development (0017) has been trying to acquire 80 percent of the ownership shares of the area to pave way for compulsory auction, The Standard's sister newspaper Sing Tao Daily reported in 2018.

However, the property giant's actions were blocked by the Chan family, who were increasing their ownership of the residential flats, and other shop owners who were not selling their property.

Joseph Tsang, chairman of Jones Lang LaSalle in Hong Kong, said the recent tender of the Caroline Hill Road commercial site and en bloc transactions at Percival Street show the high development and investment value of the area.