Five en-bloc industrial buildings in Sai Kung invite Expression of Interest

Hong Kong, 2 September 2024 – JLL has been appointed the sole agent for the sale of five en bloc industrial buildings at Nos. 1, 2, 6, 7 & 9 Hong Ting Road, Sai Kung, New Territories (the "Property") through the submission of Expression of Interest (EOI). As a rare opportunity to acquire an entire property portfolio in the sought-after Sai Kung district, the Property holds significant potential for conversion into a high-end senior living community. Offers for individual properties or the entire portfolio are welcome. The deadline for EOI will be announced shortly. The Property is valued at HKD 950 million.

Spanning a total site area of approximately 129,526 sq ft, the Property comprises five high-specification industrial buildings on five independent lots located in Tui Min Hoi, Sai Kung. The existing industrial buildings offer a combined gross floor area of approximately 383,579 sq ft, with each building ranging in size from 53,158 to 100,583 sq ft. The Property boasts a strategic location, adjacent to Sai Kung Road and within a short drive of Sai Kung town centre. Surrounded by predominantly low-density residential developments, it offers a serene and pleasant environment. In recent years, the district has attracted an influx of middle-to-high-income residents, further enhancing the site's appreciation potential.

The Property sits on a site with flexible land use and excellent redevelopment potential, catering to a wide range of developer and investor needs. The five existing industrial buildings offer spacious floor plans ideal for refurbishment and conversion into modern warehouses or logistics centres, presenting opportunities for long-term investment and rental income.

The site is zoned as "Residential (Group E) 1" under the Approved Sai Kung Town Outline Zoning Plan No. S/SK-SKT/6. Investors can apply for lease modification and pay the land premium to redevelop the Property into a residential project, capitalising on the growing demand for high-quality housing in the district.

Notably, the Property received Town Planning Board approval on 26 November 2021 for redevelopment into five elderly care homes and supporting facilities, highlighting its potential for senior housing. Such is particularly timely given Hong Kong's rapidly aging population and the subsequent surge in demand for high-quality senior housing. Located in a serene and liveable environment surrounded by lush mountains, the Property is situated on a spacious site capable of accommodating numerous residential units, making it a prime location for high-end senior living developments.

The Property will be sold on an "as-is" basis, with partial vacant possession and partially subject to the existing tenancies.

Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said: "Given Hong Kong's aging population and the strong demand for high-quality senior living project, we believe that redeveloping the Property into an upscale senior living community holds the most promising potential. Additionally, the steady demand and consistently low vacancy rates of the local industrial property market indicate a definite market and value. The Property, situated on a rare large-scale industrial site with a site area of nearly 130,000 sq ft in the Sai Kung district, presents a unique opportunity for diversified development, making it highly attractive to developers and investors. Overall, the Property's prime location and flexible land use offer significant potential for value appreciation. This rare and premium industrial property presents a compelling opportunity for developers and investors seeking long-term returns or asset value appreciation."

For more information, please contact Oscar Chan at 5348-0312 or Ariel Tam at 9343-2073.