Snack food producer Four Seas snaps up Hong Kong office space as bargains lure buyers
Grade A office buildings in Kowloon have lost about half of their value since the market peaked in end-2018
The snack food manufacturer agreed to buy 25,000 sq ft of office units in Kwun Tong for HK$205.4 million (US$26.3 million), it said in a Hong Kong stock exchange filing on Monday. That works out to HK$8,226 per square foot, or 12.5 per cent below the asking price in the same building.
“With limited new demand and weak market sentiment, the prices of certain commercial buildings in Hong Kong have decreased significantly to a relatively low level,” chairman Stephen Tai Tak-fung said in the filing. “The acquisition represents a good investment opportunity.”
The group agreed to buy the entire 31st floor of a grade A office building on 41 King Yip Street with naming rights, and another office unit on the 21st floor of a building known as The Vision in the same area. They also include seven car parking spaces and certain signage space.
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The seller is a unit of Max Paramount Business, an offshore company ultimately owned by a certain Choi Kin-yeung.
