CBRE Appointed as Sole Agent for The Sale of Three Consecutive Industrial Floors of Vita Tower, Wong Chuk Hang

CBRE has been appointed as the Sole Agent for the public tender sale of three very rare consecutive floors—21/F, 22/F and 23/F—of Vita Tower, 29 Wong Chuk Hang Road, Wong Chuk Hang, Hong Kong. The tender will close at noon, Wednesday, March 28, 2018. The indicative price for the three floors is HK$435 million or approximately HK$11,815 per sq. ft.

The Property consists of three consecutive whole-floors with a gross floor area of approximately 36,821 sq. ft. The floors are in the high-zone of Vita Tower, a high quality industrial building. The Property enjoys an exceptional view overlooking Wong Chuk Hang and Ap Lei Chau. The Property is within an easy 5-minute walk to Wong Chuk Hang MTR Station, connected by a covered and elevated walk-way. The MTR journey time from Wong Chuk Hang to Admiralty MTR Station takes no more than 7 minutes.

Since 2001, when the government rezoned the Wong Chuk Hang industrial district from ‘Industrial’ to ‘Other Specified Uses (Business)’, the area has gradually transformed into a commercial district. The launch of the MTR South Island Line in December 2016 has enhanced the district’s accessibility, accelerating the evolution of Wong Chuk Hang.

Today, the Wong Chuk Hang commercial district is home to many Grade-A office buildings, modern industrial developments, upscale hotels and luxury residential developments. An increasing number of multi-national companies, such as AXA Insurance, CNN, Mizuho Bank, Mayer Brown JSM, and Ernst & Young have set up offices in the new commercial district.

The emerging district has also attracted several highly popular co-working operators. One major co-working operator in the district occupies 7 whole-floors (circa. 73,500 sq. ft.) of an industrial building. There is approx. 92,000 sq. ft. of co-working space in Wong Chuk Hang today.

The promising prospects of industrial properties in Wong Chuk Hang is underlined by recent transactions in the district. In March 2017, Empire Group acquired Zung Fu Garage Building for HK$1.56 billion, at an accommodation value of HK$9,541 per sq. ft. In that same month, CBRE successfully facilitated the sale of 97% ownership of Tin Fung Industrial Mansion. In April 2017, the 23/F and Roof of Sun Hing Industrial Building was sold for HK$49.8 million, approx. HK$10,609 per sq. ft. Another landmark transaction in the district involved Central Development acquiring Gee Luen Hing Industrial Building for HK$1.11 billion in September 2017. These properties were all sold soon after they were brought to market, highlighting the demand for industrial properties in Wong Chuk Hang from both investors and owner occupiers due to the district’s high potential for strong capital value and rental growth.

Upscale residential projects are also highly sought after in the area. The first phase of the residential project above Wong Chuk Hang MTR Station attracted 14 tender bids in February 2017, a record for railway residential projects. The second phase was sold in December 2017 to Kerry Properties and Sino Land, and the third phase is expected to be released by way of tender in 2018.

John Davies, Executive Director, Capital Markets, CBRE Hong Kong said, “Wong Chuk Hang will continue to evolve into an established commercial hub on Hong Kong Island and capital values will continue to grow as the district transforms. Once the 4,700 residential units and 450,000 sq. ft. shopping mall above Wong Chuk Hang MTR Station is complete, we believe capital values in Wong Chuk Hang will grow exponentially from current prices. Vita Tower is well placed to benefit from this evolution. Any investor should be optimistic about the Property’s future rental and capital value growth. We expect a significant amount of interest in the Property.”

For enquiries of the tender sales, please contact John Davies at +852 9262 8141.