Who Prefers The "Landlord" In Hongkong?

In November 24th, citing the sources, AIA is negotiating with Taigu real estate and intends to purchase HK $8 billion (about 6 billion 600 million yuan) for the Kowloon Bay commercial building.

According to the report, the total floor area of the project is about 555 thousand square feet (about 51561 square meters). If the final change is HK $8 billion (about 6 billion 600 million yuan), it will become the largest commercial real estate paction in Kowloon, with a price of about 14 thousand Hong Kong dollars per square foot.

In view of this, Taigu real estate stakeholders told the interface reporters that Taigu real estate is indeed considering the possibility of selling a full Affiliated Companies 100% interest, which is owned by the wholly owned Affiliated Companies.

6321 floor of the New Kowloon inland section, Kowloon Bay.

At present, the sale is still under negotiation, and the counterparty and paction price have not been finalized.

With the opening of Shanghai Dazhong Li project in 2016, the number of Swire real estate projects in mainland China will increase to 40% in terms of floor area.

Taigu real estate is an old Hongkong British owned enterprise under the Swire Group. It runs well in the large complex with slow work and meticulous work, and has commercial and residential projects in Hongkong, the mainland and many other regions.

Its representative works include Tai Koo Shing, Tai Koo square in Hongkong, Donghui City, Tai Koo Hui in Guangzhou, Taigu in Beijing, and Pacific Ocean in Taigu, Chengdu.

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It was invested by Taigu real estate in 2013 and plans to build more than 550 thousand square feet of commercial building, which is currently under construction and will be completed in 2017. It is planned for non industrial purposes (excluding housing, hotels, warehouses, gas stations and residential buildings).

The price of Taigu real estate is HK $2 billion 638 million, and the floor price per square foot is only HK $4753. If it is successfully sold, the proceeds will be 3 times higher.

At that time, some analysts pointed out that if Taigu continued to absorb the surrounding land, it would be able to turn the area into another Taigu city.

Tai Koo Shing is the most mature commercial residential area in Hongkong.

The landmark commercial complex project.

Located in the ancient city center of Taigu City, it has more than 160 shops, the largest shopping center in Hong Kong Island, and one of the best commercial properties of Tai Koo estate.

In the third quarter of 2015, the report released by Swire real estate in November 6th showed that retail sales of Tai Koo Shing Center increased by 6.7% compared with last year's 3 retail properties in Hongkong as of September 30th.

However, affected by the deterioration of the retail industry in Hongkong, the retail sales of shopping mall in Tai Koo square in Hongkong and the store in Donghui city were reduced by 13.7% and 7.9% respectively compared with last year.

Deutsche Bank expects Hongkong retail store rents to fall by 15%-20% per annualized rate in the coming year.

Speaking at the company's semi annual report, Mr Bradley, chief executive of Swire, said that it is expected that retail business in Hongkong will continue to be weak in the second half of the year, and that the pressure on rental growth will not be improved.

At the same time, Bradley stressed that unlike Hongkong, the sales performance of Tai Koo property in the mainland China's shopping malls was ideal. In the first half of the year, the rental of retail property in the mainland of Tai Koo estate increased by 11% to 824 million yuan over the same period last year.

Perhaps it is out of consideration of the future commercial market risks in Hongkong. Taigu real estate does not continue to purchase the land surrounding the Kowloon Bay business block, but chooses to sell all the shares owned by the company.

At the same time, Taigu real estate is gradually upgrading mainland China projects. At present, Swire has 5 commercial projects in Beijing, Shanghai, Chengdu and Guangzhou. In addition, they are developing a city complex project in Dalian with CITIC Real estate.