Hong Kong Investor Nets US$30 Million After 40% Asking Price Cut

The retail portfolio has changed hands for HK$256.8 million, according to Land Registry data, giving its long-time owner a substantial return despite a steep reduction in the asking price.

The assets comprise retail shops in Cheung Lee Commercial Building and the podium of Wing Lee Building, both on Kimberley Road in Tsim Sha Tsui.

Deal delivers nearly HK$237 million profit

The seller, low-profile investor Ng Kan-hoi, had held the properties for more than four decades before completing the sale.

He had originally listed the assets for a combined HK$430 million, but later slashed the price by 40 per cent.

Even after that cut, the transaction secured a profit of nearly HK$237 million, equivalent to US$30.2 million, according to the source.

The return amounted to 12 times the investment, highlighting how strongly the portfolio had appreciated over the holding period.

Sale comes amid a weaker market

The transaction took place amid concerns over rising interest rates and a weak retail property market.

That backdrop makes the sale notable: Ng accepted a deal more than 40 per cent below his original asking price, yet still locked in the reported profit after holding the Tsim Sha Tsui shops for decades.

The sale therefore reflects both the pressure facing prime retail property and the gains accumulated by a long-term investor.

Source: South China Morning Post