New look for old buildings

Property | Kevin Xu 14 Nov 2019

Developers are collaborating to acquire old buildings for redevelopment. A mainland consortium recently bought an old building at 1-9 Eastern Street in Sai Wan for HK$528 million.

The five-story building, covering 3,927 square feet, consists of 25 residential units and five street shops.

The buyer is a well-known mainland corporation, and it is the first time that it has engaged in property development in Hong Kong, The Standard's sister paper Sing Tao Daily reported.

The buyer intends to redevelop the aging building into a boutique luxury project. With a plot ratio of 8.9, the building has a total floor area of 34,950 sq ft, with an acquisition price of HK$15,107 per sq ft.

Ten units at 1-3 Eastern Street, which range from 485 sq ft to 505 sq ft, are priced between HK$11.25 million and HK$11.71 million.

Another 10 units measuring 487-sq-ft at 5-7 Eastern Street are priced at HK$11.29 million each.

The five 385-sq-ft residential units at 9 Eastern Street changed hands for HK$8.93 million each, or about HK$23,200 per sq ft.

The buildings at 1-7 Eastern Street obtained occupation permits in June 1967, while the building at 9 Eastern Street got its permit in April 1968.

With a floor area of 1,300 sq ft each, the five street shops are offered from HK$40 million to HK$53.5 million.

Meanwhile, City Concept has purchased three 1,133-sq-ft units at Evergreen Mansion at 14 Cornwall Street in Kowloon Tong for HK$30 million each, or about HK$27,000 per sq ft.

The directors of City Concept include Luk Wing Yee as well as companies Ashley Pacific and Carry Fortune.

City Concept is believed to be related to Tony Yau Tang-tat, brother of Secretary for Commerce and Economic Development Edward Yau Tang-wah.

Excel King Investment, controlled by Tony Yau, purchased a luxury house at 27 Lugard Road on The Peak for HK$384 million in 2012 and sold it last year for HK$710 million.

The luxury project was held through Crown Empire, whose directors also include Luk Wing Yee, Ashley Pacific and Carry Fortune.

Evergreen Mansion, originally completed in 1966 with a site area of about 13,982 sq ft, hosts 24 residential units. The plot ratio of 2.1 will give the project a gross floor area of 29,362 sq ft.

Excel King Investment has already acquired 21 units at the project for more than HK$574 million. If City Concept is related to Tony Yau and Excel King, Excel King will have purchased all 24 units at Evergreen Mansion for a total of HK$664 million, or about HK$22,600 per sq ft in terms of gross floor area.

In other news, five units at Rose Court in Yau Yat Chuen were acquired by a corporate buyer for HK$22.79 million to HK$32.09 million each, adding up to a total of HK$130.78 million.

Constructed in 1967, Rose Court consists of more than 20 three-story residential buildings that range from 812 sq ft to 1,011 sq ft.

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