Angela Leong firm buys BOC Tower

PUBLISHED : Wednesday, 25 June, 2008, 12:00am
UPDATED : Wednesday, 25 June, 2008, 12:00am

A company led by Angela Leong On-kei, casino mogul Stanley Ho Hung-sun's fourth wife, has acquired BOC Insurance Tower in Central for HK$800 million, according to the Lands Registry.

It is the largest transaction involving a whole block building in Central so far this year.

According to a Lands Registry document, Master Land (HK) bought BOC Insurance Tower from BOC Group Life Insurance for HK$10,635 per square foot last Thursday.

Ms Leong is the deputy chairman and director of Master Land (HK).

The monthly rent at the building is about HK$1.3 million, while the buyer can get a rental yield of only 1.9 per cent.

The average office rent of the building is about HK$13 per square foot.

Although the existing rental yield is low, Kent Fong Chi-kit, head of the investment department at DTZ Hong Kong, believes this will improve upon the renewal of the tenancies.

He expects office rents to increase to HK$26 per square foot.

'The existing rental yield is low, but the office is located at a prime location in Central. You can't get the building if you did not offer an aggressive price. The price is reasonable,' Mr Fong said.

The 21-year-old BOC Insurance Tower at 134-136 Des Voeux Road, Central, next to Tai Sang Bank Building, has a total gross floor area of 75,220 sq ft.

Its price is likely to become a reference point in the tender of two other office buildings in the Central business district.

Chuang's Consortium International has put up its Chuang's Tower on Connaught Road, Central, for sale with an asking price of HK$1 billion or an average of HK$16,505 per square foot.

CNAC Group's CNAC Building at 10 Queen's Road, Central, has also been put up for tender. The tender will close on July 31.