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.