ING sails to Kowloon Bay, HK

ING Real Estate has bought an industrial building in Kowloon Bay, Hong Kong for $US28 million on a yield of 3.8%.

The Chuan Hing Industrial Building will be purchased on an average rental of $HK7 per sq ft compared with $HK8-10 for industrial buildings with similar building age in the same district.

The building is approximately 10 minutes’ walking distance from the Mass Transit Railway station and is well connected to other public transport networks.

The 10 level building has gross floor area of 159,273 sq ft with seven lorry parking spaces, eight van parking spaces, loading and unloading space on the ground floor.

ING Real Estate Investment Management Asia’s chief executive Dr. Robert Lie said the building has good investment potential for both rental and capital gain.

“The building will be thoroughly refurbished, actively managed, and is set to benefit from the urban rejuvenation and transformation of Kowloon Bay from an industrial district into an office hub.

“A rejuvenated Kowloon Bay could strengthen the capital growth performance of the Chuan Hing Industrial Building, and feasibly allow its redevelopment into an office building or hotel in the long term,” he added.

Kowloon Bay is currently undergoing a major facelift with the construction of new Grade-A office buildings and two large-scale shopping malls expected to start in mid-2007.

Lie said the building will enjoy long-term capital growth potential with the redevelopment of the Kai Tak Airport site, the largest remaining urban site in Hong Kong, which when completed will transform the whole district into one of the Hong Kong‘s biggest commercial, tourist and entertainment locations.

Australian Property Journal