Leading diversified professional services and investment management company Colliers (NASDAQ and TSX : CIGI) is pleased to announce it has been appointed as sole agent by the landlord for the disposal, or lease, of a large retail space on the ground and first floor of 901-907 King’s Road. Acquired by the current landlord in 1977 from the developer, the property is up for sale for the first time, and has an asking price of HK$360 million.

The property has a total gross area of about 25,220 sq. ft., with a ground floor of approx. 7,800 sq. ft. and a first floor of approx. 17,420 sq. ft. The eye-catching façade has an approximate width of 11 metres and a height of 7.3 metres that faces directly onto King’s Road and offers an effective advertising platform. It also benefits from having the exposure to King’s Road and Hoi Chak Street.

The asset has a regular layout and high space efficiency. In additon to the main entrance facing King’s Road, there is also a second entrance at the side of the building on the ground floor. To further boost the rental income, the space can be partitioned into several shopping units, ideal for a wide range of businesses, with each having its own entrance.

The sale also includes 35 car parking spaces, which is a rare feature given tight supply and the high demand of car parking spaces on Hong Kong Island. The property is just a two-minute walk from Quarry Bay MTR station and is further connected to Hong Kong Island and Kowloon by ample bus routes.

Strong office and residential footprint

The asset is adjacent to Taikoo Place, one of the major business hubs on Hong Kong Island, which has approximately 6.5 million sq. ft. of commercial floor space with tenants mainly comprising multinational corporations. It also has other major office buildings in close vicinity, which include Kerry Centre, AIA Hong Kong Tower, Prosperity Millennia Plaza and Atelier, creating a strong footfall to attract food and beverage outlets and retail shops.

There are multiple residential redevelopment projects launched in the area, covering Pan Hoi Street, Finnie Street and the buildings of the former Civil Servants Co-operative Building Society Scheme on King’s Road, further supplementing future demand for retail amenities.

First time sale after 45 years, presenting a rare opportunity Stanley Wong, Co-head of Capital Markets & Investment Services, Colliers | Hong Kong, commented: “Acquired from the developer 45 years ago and used for running restaurant businesses, the property has been put up for sale for the first time. The demand for dining and daily necessities is high in the neighbourhood, with many restaurants operating at full capacity. ”

“The asset has car parking facilities and windows on three sides of the first floor, and the property not only provides a solution for dining and retail, but also for education and healthcare businesses. There is no restriction on the ownership and user rights of the car parking spaces on the second floor, which can be leased or sold to people other than the building occupants,” added Wong.

Wong also commented, “The ground-floor space fronting King’s Road can be partitioned for setting up restaurants or retail stores, with an estimated rental value of about HK$70-80 per sq. ft. There is another entrance at the rear of the building on the ground floor, and an internal staircase and lift may be installed to connect the first floor for running dining, education and healthcare businesses.”

“With an estimated rental value of HK$35-40 per sq. ft, the overall forecasted monthly rental income is around HK$900,000 to HK$1 million. With the spacious floor area of the retail space facing King’s Road, the buyer can subdivide it into two shop units according to the needs of different businesses to increase rental income. After deducting the value of the car parking space, the average price per sq. ft is slightly more than HK$10,000 with an expected return of over 4%. The owner is open to sale or lease,” concluded Wong.

If you would like to know more about this opportunity for sale/lease, you can contact the Colliers agents Mr. Wong or Mr. Wan via the below contact details. 

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