Developers setting their sights on Hong Kong’s old urban buildings

Developers setting their sights on Hong Kong’s old urban buildings

Big developers are splurging  huge sums to acquire tenement buildings for redevelopment to shore up their land banks in land-strapped urban areas.

A consortium, led by New World Development (0017), plans to take over a landmark old building in North Point for HK$3.6 billion after convincing once defiant owners to give up more than 20 percent ownership of the structure in return for more than HK$700 million, according to Singtao Daily reported yesterday.

Most minority owners of the 56-year-old State Theatre Building accepted the NWD offer, each pocketing between HK$5.5 million to HK$17.5 million. The Lands Tribunal allows a forced sale if owners who control 80 percent of a building agree to sell their units.

The antiquated 11-story building, which stands on a 35,214-sq-ft site, provides a commercial gross floor area of 528,210 sq ft and residential premises of 352,140 sq ft.

Meanwhile, Henderson Land (0012) splurged HK$1.08 billion to take possession through forced acquisition of two seven-story tenement buildings located along Kimberly Road, Tsim Sha Tsui.

Hopewell Holdings (0054) also acquired several properties along Queen’s Road East in Wan Chai for a combined HK$120 million.



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