Hong Kong developer loses record US$331.5 million on resale of residential land at Kai Tak as coronavirus darkens market outlook
A Hong Kong developer has suffered the biggest loss on a land sale in the city’s history, offloading a residential plot at Kai Tak to raise cash to help it weather a market slump caused by the coronavirus pandemic.
Goldin Financial Holdings, controlled by billionaire Pan Sutong, has agreed to sell the plot at the site of the former international airport for an estimated loss of HK$2.57 billion (US$331.56 million). It cited the uncertain market outlook as the city’s economy suffers a massive blow from the Covid-19 outbreak.
The company’s pullback represents a damning verdict on the outlook for the market, with valuations pummelled by months of anti-government protests, before the outbreak of coronavirus this year darkened the gloom. The former airport strip has now been associated with several deals that burned developers seeking a slice of action the world’s most expensive real estate market.
A loss on this scale from reselling government land was unprecedented, surveyor said.
“Very few land parcels change hands,” the surveyor said. “The market has reversed, and Kai Tak really has a higher risk as the supply there is relatively high. Land value there will drop more than land in urban areas such as Kwun Tong and Sham Shui Po.”
Goldin is selling the plot, called Kai Tak 4B Site 4, for HK$7.04 billion, having paid HK$8.91 billion, or HK$15,497 per square foot, for it in November, 2018. When its initial investment and finance costs are taken into account, the loss amounted to about HK$2.57 billion, according to a company filing to the Hong Kong stock exchange on Monday.
The resale price translates to HK$12,250 per square foot, bringing it back to a level last seen at Kai Tak in March, 2017.
“Considering the preliminary stage of development of the property and the significant capital required for the project, the directors adopted a prudent approach to retain more cash for the group’s existing business, against the uncertain outlook in the property market and the overall economic downturn in Hong Kong,” said executive director Shirley Hui Wai-man in the company statement.
“The proceeds from the disposal would be primarily used to reduce the group’s borrowings, thereby enhancing its financial flexibility as a whole.”
Hong Kong’s economy shrank 8.9 per cent last quarter from a year earlier, the worst on record. Home prices in the world’s least affordable housing market have retreated by 5.4 per cent on average from the peak in May last year, with some consultants predicting as much as a 20 per cent slide.
“The value of commercial land now is different from before. The economy now is very different, with the pandemic, the intensified US-China trade war, the social [unrest] – a combination of several negative factors,” property agent said.
Goldin announced a loss of HK$482 million for the six months to December, 2019, due to lower revaluation gains on investment properties and higher finance costs. That compared to a profit of HK$1.14 billion a year ago.
The buyer of the Kai Tak plot is an investment holding firm, Top Family Group, according to the announcement.
Goldin’s shares opened 3.52 per cent higher on Monday at HK$1.47 in Hong Kong after the firm announced the loss-making deal, before slipping back to close 2.1 per cent lower, at HK$1.39.
The sale comes 11 months after Goldin rescinded its HK$11.1 billion (US$1.42 billion) winning bid for 4C Site 4 at Kai Tak, forfeiting a HK$25 million deposit on the site.
The company abandoned the site because of “social contradiction and economic instability”, according to an announcement in June when lawmakers were preparing to vote on the city’s contentious bill allowing extradition of criminal suspects to the mainland.
More than a million Hongkongers, according to organisers, then took to the streets to protest against the bill, a rally that kick-started months of civil unrest that dealt the city a massive economic blow.
Goldin’s chairman, Pan, is ranked No. 22 on the Forbes Hong Kong Rich List this year with a net worth of US$4.2 billion.
HNA is another developer to incur losses from reselling plots at Kai Tak to raise much-needed cash.
Last February, Hong Kong International Construction Investment Management Group, the listed unit of the Hainan-based HNA Group, sold Area 1L Site 2 to Wheelock Properties for HK$6.89 billion, representing a loss of HK$550 million, reflecting the slowdown of the residential property market in Hong Kong, according to a company filing.
HNA bought the plot in March 2017 for HK$7.44 billion, or HK$13,500 per square foot on the basis of gross floor area of 551,134 square.
(South China Morning Post)
Mysterious buyer helps Goldin out with $7b deal
Goldin Financial (0530) has offloaded a 9,708-square-meter residential site in Kai Tak at a loss of about HK$2.57 billion to retain more cash amid a sluggish local economy wrecked by the Covid-19 pandemic.
Goldin sold the plot, namely Kai Tak Area 4B Site 4 to Top Family Group for HK$7.04 billion, the developer said yesterday.
Goldin acquired the site for HK$8.9 billion or HK$15,500 per sq ft in November 2018.
It was the last plot that Goldin held on the former Kai Tak airport's runway.
The funds will be used to repay borrowings and for general working capital, Goldin said.
It said the property development market in Hong Kong remains uncertain in the long run, so the management adopted a prudent approach to retain more cash for the existing business.
Wheelock Properties managing director Ricky Wong Kwong-yiu said the selling price of the Kai Tak site is in line with the market price, expecting local home prices will slightly rise in 2020.
Goldin Financial recorded a net loss of HK$478 million for the second half last year.
The sale also came 11 months after Goldin Financial won the tender for a nearby commercial plot 4C Site 4 for HK$11.12 billion, or more than HK$12,800 per sq ft in May last year.
However, one month later, it forfeited a HK$25 million deposit by walking away from the commercial site, as the Sino-US trade war rattled the property market.
Later, in September, all five bids made for this site were rejected by the government, as they did not meet the reserve price.
Kai Tak, which had been left vacant after the SAR's airport relocated to Chek Lap Kok in 1998, has since been planned to be redeveloped into Hong Kong's second main business district.
Two residential plots on the runway of Hong Kong's former international airport in Kai Tak will be offered for sale in the current fiscal year, with one of them valued at up to HK$10.4 billion.
Kai Tak Area 4E Site 2 measures approximately 117,900 square feet. Market surveyors value the plot at between HK$9.1 billion and HK$10.4 billion, or between HK$14,000 and HK$16,000 per buildable sq ft.
The adjacent Kai Tak Area 4E Site 1, which measures approximately 59,700 sq ft, with a total floor area of 328,400 sq ft, has a market valuation of between HK$3.9 billion and HK$4.3 billion, or between HK$12,000 and HK$13,000 per buildable sq ft.
(The Standard)
Landlords in Central, Hong Kong slash rents by more than a third as vacancy climbs to six-year high amid economy crushed by coronavirus
Hong Kong’s major landlords of premium office space in Central are cutting rents by more than a third – returning them to 2017 levels – as the sharp economic contraction caused by the coronavirus forces corporate tenants either to downsize or move somewhere cheaper.
The vacancy rate in Central, the world’s costliest office market, climbed to a six-year high of 4.4 per cent in March, property agent said.
Taking advantage of the lower rent, mainland Chinese private equity investor Hony Capital has leased 10,000 square feet at the 88-storey Two International Finance Centre – the city’s second-tallest office tower – for HK$130 per sq ft, about 35 per cent lower than the building’s peak rate in 2017, according to market watchers.
The new lease will cost the Beijing-based firm, a unit of investment holding company Legend Holdings, a monthly rental of HK$1.3 million. The firm is downsizing by 23 per cent from its 13,000 square foot office at Exchange Square. The average asking rent at Exchange Square was HK$150 per sq ft at the end of April, according to property agent.
About a 15-minute walk from TWO IFC, another company took up 4,000 square feet of office space at The Center for HK$55 per sq ft per month, the lowest rate since April 2016 in the world’s most expensive building.
“Our figures show Central’s grade-A office rents have dropped 9.2 per cent in the first three months and we expect it will drop 25 to 30 per cent this year,” property agent said.
Decentralisation for more cost-effective options remains a key trend this year as tenants control real estate costs during uncertain times, agent said.
“The Covid-19 outbreak brought more uncertainties to business prospects, which inevitably cast a shadow on the real estate plans of corporates. We forecast a cycle of moderating leasing activity in Hong Kong with short-term cost rationalisation overtaking long-term planning,” the agent said.
“Leasing demand was moderate over the last few months as tenants have adopted a wait-and-see attitude.”
Hong Kong’s economy shrank 8.9 per cent last quarter from a year earlier, the worst on record, the government said last week. Unemployment rose to a near 10-year high of 4.2 per cent in March as most companies either asked staff to take unpaid leave or laid them off to save costs.
Rental decline in the office market continued to worsen in the first quarter of this year as a result of higher vacancy rates across all major office submarkets amid weakened leasing demand, the agent said.
“Previously, the office leasing market in Central was dominated by mainland banks and finance companies which pushed rents at IFC to above HK$200 per square foot. Now, companies actively looking for spaces are those local firms either planning to relocate to cheaper buildings or downsizing,” another agent said.
The agent believes the correction in office rents in Central is not yet over.
“Some landlords are even offering rent-free periods to retain existing tenants when their leases are due for renewal,” the agent said.
(South China Morning Post)
高銀售啟德住宅地勁蝕25.7億離場指樓市不明朗折讓約21%
去年曾爆「撻訂」風波的高銀金融(530)再次「棄守」啟德地，高銀昨早公布，因本港物業市場不明朗，以逾七十億四千萬元出售啟德4B區4號住宅地皮，較一年半前的入手價八十九億元折讓約兩成一，高銀預期將自出售事項錄得虧損約二十五億七千萬元。去年六月高銀曾以本港局勢不穩為由「撻訂」一百一十一億元的啟德商業地王，是次又再蝕讓離場，意味着高銀已全面撤出啟德發展區。
此次交易的買家身影頗為神秘，公告僅披露為一海外註冊公司TopFamily。同在啟德附近持有多幅地皮的會德豐(020)、新地(016)、恒地(012)昨均否認為買家。有份參與交易的測量師昨稱，交易雙方具敏感性(sensitive)，不便透露具體信息。
買家TopFamily頗神秘
高銀稱，出售事項所得淨額將主要用於減少集團借貸，以提高整體財務靈活性。目前所出售物業項目的地基工程尚未展開，考慮到該物業處於初步發展階段及項目所需資金龐大，且在本港整體經濟低迷、物業市場前景不明朗的背景下，集團決定採取審慎方針為現有業務保留更多現金。全球經濟疲軟，本港亦現經濟收縮迹象，集團相信本港物業發展市場長遠仍存在不確定因素。
高銀在二○一八年十一月，與大股東兼主席潘蘇通以組成合資公司方式，投得啟德第4B區4號住宅用地，作價逾八十九億元，雙方分別各佔六成及四成權益。去年四月，高銀再向潘蘇通購入餘下四成權益。該啟德住宅發展項目總地盤面積約九千七百平方米，高銀原計畫於二○二四年九月底或之前把物業落成。
2018年以89億買入
高銀近年「跑馬圈地」頗為進取，多次爆冷以高價奪得地皮，包括目前持有的九龍灣高銀金融國際中心、何文田常盛街發展項目及何文田站第一期住宅地等，投資額達數百億元。惟在去年則因社會局勢不穩而鬧出「撻訂」風波。
去年五月，高銀斥資逾一百一十一億元投得啟德首幅跑道商業地第4C區4號地皮，創東九商業地呎價新高。該地塊佔地面積逾一萬平方米，原計畫興建地標式高級酒店和辦公大樓，預計總投資額高達一百六十億至一百八十億元。但周年六月，因多名獨立董事極力反對，認為本港社會衝突及經濟不穩定，將對商業地產市場的增長產生負面影響，高銀不得不宣布「撻訂」，寧蝕二千五百萬元訂金離場。該地皮在同年九月再招標，但最終因各入標者作價未達政府要求而流標。
去年「撻訂」啟德商業地王
與進取拿地形成對比的是高銀頗為緊張的財務狀況，高銀二○一八年曾將旗下九龍灣高銀金融國際中心，抵押給長實(1113)借取逾一百億元的貸款，借款已於去年四月還清。據高銀財報，截至去年十二月底止，其流動負債總額近一百一十九億元，其中，一年內到期銀行借貸及其他貸款逾八十八億元，但手頭現金僅不到二十四億元。此次出售交易完成後，可減輕高銀財務壓力。
(經濟日報)
灣仔樂基中心 人流旺合樓上舖用
灣仔樂基中心位於灣仔道，比鄰灣仔商業地段，加上項目屬銀座式日常人流暢旺吸引不少用家進駐。
樂基中心樓齡有近40年，但內籠保養亦見不俗。物業大堂裝潢新簇，感覺光猛，設有3部客運升降機，另設有1部載貨升降機，方便租戶使用。
該座為混合式商廈，樓高20層，物業地下及地庫為商舖，分別提供6,000多平方呎的樓面，目前由超級市場及銀行租用。而樓上部分作寫字樓或食肆樓層。早前業主將4層前身為酒店之樓面收回，現時改作多用途辦公室使用。而物業租戶亦見多元化，如食肆、教育機構等。
每層4100至6700呎
另1樓至16樓面積由約4,100平方呎至6,700平方呎不等，其中1樓至4樓樓面較大。標準樓層設有約5個單位，間隔呈方形，甚為四正，單位主要望摩利臣山或灣仔一帶樓景。
位置方面，樂基中心位於人流暢旺的灣仔道，距離灣仔港鐵站約10分鐘步程，另亦有多種公共交通工具來往各地。另物業鄰近多個大型商廈及住宅項目，如英皇集團中心、新落成的壹嘉等。
去年10月錄成交 呎租30元
物業曾於2016年以全幢形式放售，當時開價約18億元，呎價約1.68萬元。由於物業由大業主持有，故成交主要以租賃為主，惟對上一宗成交亦要追溯至2019年10月，一個低層06室，面積613平方呎，以18,390元月租租出，呎租約30元。
而根據差估署《香港物業報告2020》顯示，本港私人寫字樓空置率由2018年的8.6%上升至2019年的9%，當中中西區甲級寫字樓的空置率由3.9%，上升至4.6%。
報告指出，港島私人寫字樓整體空置率按年再輕微下跌，由6.8%降至6.7%。而九龍及新界寫字樓的空置率則持續向上，分別上升至11.2%及12.7%。
其中，港島區甲級寫字樓的空置率由2018年的7%，2019年續降至6.2%，主要是東區及南區的甲級寫字樓空置率下跌所致，相信與近年不少企業節省租將寫字樓搬往港島東區、南區有關。而中西區的甲級寫字樓空置率相對由3.9%轉升至4.6%；灣仔甲級寫字樓空置率亦由4.8%上升至7.1%。
(經濟日報)
甲廈租金按月跌4.2%重返2016年水平
在疫症流行下，環球經濟幾乎停擺，寫字樓租售價繼續尋底。有代理報告指出，上月份指標甲廈租金按月再下挫4.2%，連跌10個月，並重返2016年年中的水平，單計今年以來，甲廈租金已經下挫12.8%。
乙廈租金累跌約4.5%
該代理行認為，雖然本港疫情緩和，但中美貿易戰及本地社會事件大有捲土重來之勢，故對於後市抱持審慎態度。
該報告指出，甲廈售價按月也下跌1%，雙雙自去年7月份起連跌10個月。隨着甲廈價格下跌，過去跌勢較慢的乙廈，租售價跌幅也開始擴大。當中，灣仔新銀集團中心及炮台山北角城中心分別錄得10年新低及6年新低的租務成交個案，上月按月下跌1.3%，當中以灣仔按月下跌4.2%為跌幅最大。總計本年至今，乙廈租金累積下跌約4.5%。
雖然近日香港及內地疫情有緩和迹象，但寫字樓後市仍難以樂觀。該報告指出，近期有個別寫字樓租客開始欠租，包括一家大型共享工作間營運商，其位於九龍及港島區部分辦公室已拖欠租金，若該營運商稍後遷出多個現有據點，勢將加劇甲廈空置率，並令到整體寫字樓租金下行壓力加深。
恐貿戰社運重來
代理表示，疫症緩和之下，預計商廈市場累積多時的購買力有望得到釋放，第三季的成交量或回升，但由於市場前景不明朗，示威運動捲土重來、貿易戰有升溫之勢，故租售價格走勢預計難以同步大幅回升。
(星島日報)
西環皇后酒店意向4.5億
近期當旅遊業大受打擊，酒店空置率之高前所未有，有準買家於此時吼準低水酒店，有投資者則趁勢放售，西環皇后大道西皇后酒店全幢放售，意向4.5億，平均每呎1.68萬，料回報逾2厘。
上址西環皇后大道西199號全幢，現址為皇后酒店，樓高23層，總建築面積約26779方呎，以意向價4.5億計算，平均呎價16804元，物業現為一幢酒店，設有40個房間，平均每個房間涉資1125萬。
每個房間涉資1125萬
代理表示，是次出售物業緊貼西營盤港鐵站A1出口，業主於十五年前購入，並改裝為酒店，至今經營十餘年，現時物業內裝雖然較舊，但房間面積均寬敞實用，新買家購入後可將物業裝修或改裝重新定位。代理指出，目前該全幢酒店出租予酒店營運商，每月租金40萬，由於現時為非常時期，若然市況回復正常，加上業主為酒店增值，料每月租金可提升至80萬，回報逾2厘。
代理又說，由於物業落成時為一幢寫字樓，買家可以把現有的酒店拆卸，並回復作寫字樓用途，或將酒店房間裝修，重新定位為服務式住宅/共享生活空間Co-livingSpace等，將回報進一步提高。
自從去年以來，反修例運動留下後遺症，加上肺炎肆虐，令投資市場急速降溫，根據高力資料顯示，鋪位及酒店成為重災區，自從去年以來，全幢酒店價格由高位回落約30%，由於價格下跌，成為財團吼準目標，希望在淡市撈底，而且酒店出路較多，可變身大增值。
可還原作寫字樓
過去數月，市場不乏酒店及服務式住宅成交，價格較高位顯著回落20%至30%，最差時刻正帶來「撈底」良機。該行指出，環顧未來5年酒店供應相當稀少，以核心區為甚，況且，酒店用途多，可打造服務式住宅或者高質素的安老中心。
(星島日報)
受疫情影響，市場觀望氣氛籠罩，惟核心區甲廈租賃需求仍具支持。消息指，金鐘力寶中心兩伙優質海景戶以每呎50元放租。
代理表示，金鐘力寶中心2座中層01室，面積約1565方呎；另高層05至06室，面積約7110方呎，以意向呎租約50元起。代理續表示，兩個單位均面向電梯大堂，並坐享開揚海景，備有基本寫字樓裝修，租客可即租即用，屬市場極矜罕指標商廈正對電梯大堂及正海寫字樓優質單位。資料顯示，前述放租的高層單位前呎租約73元，業主因應近期市況而擴大議價空間，相信可增加物業競爭力，吸引實力租客洽詢。
(星島日報)
空置率上升商廈頻錄減價續租幅度5%至10%
受疫情影響，營商環境惡化，代理指出，近期租戶紛節省成本求存，市場勢掀「遷徙潮」，令空置率上升，業主紛減租留客，近期商廈頻錄減價續租，幅度5%至10%，部分業主變陣以新條款吸客，包括延長免租期、短期續租及提供裝修費用補貼等。
該代理指出，受新冠肺炎影響，令本港失業率持續飆升，隨營商環境變得嚴峻，拖累商廈租戶承租力銳減，隨市場需求大幅度萎縮，企業逆市「大屋搬細屋、貴區搬平區」，節省成本以求存，「遷徙潮」之下，商戶目標呎租以約25元為大方向。
減價續租「海嘯」後首見
代理稱，疫情下「遷徙潮」啟動，業主間競價變激烈，逐步扭轉業內環境，現時部分業主願意減價續租，為市場過去10年來首見，對上一次市場低谷為零八年金融海嘯，現時市場續租減幅介乎5%至10%，實際減幅因應業主議幅有別，同時業主在續租期上為商戶提供彈性，以往一般續租3年，現時續租期縮減至半年，靈活性等同共享空間。
另外，代理亦指出，受疫情影響，部分業主為租客減租，租金折讓為70%至90%，為期一至兩個月，多集中於中小型發展商，於疫情下變陣，以求保存自身競爭力及留住租客。
料年中九龍空置率10%
此外，該代理指出，受疫情影響，料九龍區商廈租戶將出現「洗牌」效應，加速企業遷出核心區外，現時九龍區內甲廈空置率約9%，並預測今年年中將達10%(雙位數)，將創過去十年以來新高水平，當中以油尖旺為重災區，市場自去年中起受多項不明朗因素困擾，企業營商取態變審慎。更因為近期受疫情影響，HOME OFFICE漸成市場大風氣，令核心區地利優勢進一步減弱，造成部分企業將遷出油尖旺，轉戰東及西九龍，故空置率攀升會以核心區為主。
代理指出，「疫市」下減租已成市場大氣候，該行預期今年九龍區商廈首三季租金平均跌幅約10%，油尖旺區跌幅將較大市為高，料幅度將達12%，並料市況最快於第四季才有力反彈，需視乎疫情日後發展。
(星島日報)
