Fourseas Building on sale for $570m-plus
A Kowloon commercial property owned by an Indonesian investor and the Mass Transit Railway Corp (MTRC) has been offered for tender with an expected selling price of more than $570 million.
Michael Choi Ngai-min, managing director of Hong Kong Property Services (Agency) - the appointed sole agent - said the Fourseas Building in Nathan Road was majority owned by the Indonesian investor and 4 per cent by the MTRC.
He said the owners had received three offers, with the highest at $570 million, before the tender but were not happy with the price.
The 14-storey office building has a gross area of 64,504 square feet, including 6,573 sq ft of retail space, providing rental income of $3.26 million a month.
Mr Choi said office rents in the area ranged from $25 to $30 per square foot while sales were at about $6,400 per square foot.
Fourseas Building had fully utilised the plot ratio and was not likely to generate more floor area after a redevelopment, he said.
A good response was expected for the building, situated next to the Jordan MTR station, he said.
The tender is scheduled to close at noon on July 18.
Mr Choi said the most effective way to ease the territory's housing problem was to increase land supply instead of more market intervention by the Government.
He said the long-term housing strategy headed by Leung Chun-ying for the Special Administrative Region government should relax the pre-sale restriction.
The Government should allow pre-sales up to 20 months before project completion, instead of 15 months.
'This will increase home supply in the short term,' Mr Choi said.
He said the Government's intention to release 70 hectares of land for low-density housing supply would stabilise luxury residential prices.
