14 May 2012, Hong Kong – Colliers International has successfully concluded the purchase of 50
Connaught Road Central (the Property) in Hong Kong for a total turnover of HK$4.88 billion (US$629 million) by Agricultural Bank of China.
“Amidst acute limited new supply in Central, the Property with 999-year leasehold and about 11,500 sq ft site and sold on an en bloc basis is a valuable investment premise. The purchaser is expected to occupy the Property as its Hong Kong headquarter, demonstrating the company’s confidence in Hong Kong as well as the prospect of the local office market,” said Antonio Wu, Deputy Managing Director of Colliers International (Hong Kong).As the Property comprises a high efficiency of about 83%, the average price, based on net floor area, is HK$33,505 per sq ft. This represents a price level below that of the priciest unit rate, HK$38,200 per sq ft (net), for 20th floor of the nearby 9 Queen’s Road Central that came with an efficiency of about 73%. Taking into account the building’s naming right and roof-top signage value, the purchase of the Property is inevitably a value-for-money transaction. Designed by renowned architect Robert A.M. Stern, the Property, showcasing a façade of Manhattan’s iconic skyscraper, sets a landmark at the heart of Central, the core business district of Hong Kong. The interior offers luxury finishing and the specifications are an excellent fit as a financial institution’s headquarter. Also considered a rare gem in supply-short Central, the Property enjoys 46 meters frontage (151 feet) on Connaught Road Central facing Victoria Harbour, Central and the Kowloon peninsula. With only a short distance to major office portfolios such as Exchange Square, International Finance Centre and The Landmark, the premise connects to Hong Kong International Airport in a matter of minutes. “In the marketplace, the key challenges for many potential investors are the cost of financing and
insufficient loan-to-value ratio for sizeable investment,” said Wu. “Thus, end-users armed with abundant financial resources hold an edge over their competition. We expect that prospective buyers who seek premises for self occupancy will become more active than the previous 12 months.”