Colliers announced it has advised on the successful disposal of the Mineron Centre in Fanling for Tang Shing-bor’s family. The property, The Mineron Centre at 35-37 On Lok Mun Street Fanling sold to a Chinese enterprise, with the total transaction price being concluded at HK$695 million, making this the largest en-bloc industrial transaction in Fanling of 2021.

The Mineron Centre is located at 35-37 On Lok Mun Street in Fanling. The site offers a strategic advantage to any stakeholders looking at the logistic sector as it has strong connectivity between Hong Kong and mainland China, with it taking only 15 minutes to travel to the Liantang / Heung Yuen Wai Boundary Control Point.

The plot has an overall site area of 60,547 sq. ft. and is divided into a low and high-rise block. The low block comprises steel warehouses and has a total gross floor area of approximately 18,386 sq. ft. The five-storey high-rise block is an industrial building with a standard floor area of approximately 30,184 sq. ft., which when you combine both blocks, offers a total gross floor area of 152,762 sq. ft. The per square foot transaction price works out at HK$4,550 per sq. ft. with the high-rise block being sold on an “as is” basis with vacant possession, whereas the low block was sold with the current lease.

“We have observed robust investment activities in industrial assets in Fanling in the first half of this year, and the average per square foot price for these assets has picked up tremendously. In January of this year, Silkroad Property Partners paid HK$321 million to acquire Smile Centre located at 10-12 On Chuen Street, with a transaction price of HK$3,284 per sq. ft. In March, Hong Kong Housing Society spent HK$270.8 million purchasing an en-bloc industrial property at 5 Lok Yip Road, with a transaction price of HK$6,505 sq. ft. In June, an end-user paid HK$217 million to acquire Yau Shing Hong Logistics Centre located at 38 On Lok Mun Street, with a transaction price of HK$5,329 per sq. ft. In addition, a logistics company is understood to have paid over HK$600 million to acquire five floors in the new industrial development at 18 On Chuen Street developed by Billion, which represents a unit rate well over HK$5,000 per sq. ft. From these transactions, we can see industrial assets in Fanling were appealing to both investors and end-users,” said Russell Lam, Director of Capital Markets & Investment Services.

The successful disposal of the Mineron Centre demonstrates investors’ confidence in the prospects of Hong Kong’s property investment market. Considering the favourable government policy for industrial redevelopment, including the revitalisation scheme and the pilot scheme for standard rate land premium measure, we believe industrial assets will continue to attract a significant amount of attention from investors for the remainder of this year.

To find out more about this transaction, please contact Russell Lam, Director of Capital Markets & Investment Services via the below contact details