Colliers International has announced that the company has bought 50 Connaught Road Central (the property) in Hong Kong. Agricultural Bank of China has provided HK$4.88 billion for this purchase.
The property encloses around 11,488 sq. ft of site area and this is a 28-storey Grade A office building that was constructed less than a year ago. Based on the property’s latest transacted rent, around 4% in a year is the yield, which shows higher level than the present yield from Grade A office that ranges from 3.0% to 3.5% per annum.
According to Antonio Wu, Colliers International’s Deputy Managing Director, the property along with a 999-year leasehold period and site area of approximately 11,500 sq. ft is a significant investment premise. The company may transform this acquired property as its Hong Kong headquarters, which shows the confidence of the company in Hong Kong and the potential of the local office market, Antonio stated.
The efficiency of the property is high around 83%, wherein the average value is HK$33,505 per sq ft based on the net floor area. This price level is low when compared to the level of 20th floor of the adjacent 9 Queen's Road Central, which is HK$38,200 per sq ft, and the efficiency is approximately 73%.
The property was specifically designed by famous architect Robert A.M. Stern and is similar to the façade of iconic skyscraper in Manhattan. This property is a landmark at the heart of Central, which is Hong Kong’s core business district. Luxury finishing is featured in the interior of the building.
The property has 151 ft of facade on the Connaught Road Central that faces towards Central, the Kowloon peninsula and Victoria Harbour. The building premise is connected to the Hong Kong International Airport, including most of the office portfolios like The Landmark, International Finance Centre and Exchange Square.
Source: http://www.colliers.com/