Swiss fund plans grade A facelift for warehouse

Partners Group, the international private equity fund management firm, has teamed up with a Hong Kong-based investment fund to buy an industrial building in Kwun Tong for HK$958 million.

The buyers plan to convert the 13-floor warehouse building - Kian Dai Industrial Building - on Hung To Road into a grade A office tower in line with the city's plan to transform Kowloon East into a new business district.

Bastian Wolff, a senior investment manager at Partners, said : "We are excited to invest in this property for our clients. Together with Pamfleet, our local operator, we aim to reposition the property into a branded commercial building with sustainable features to capitalise on the trend for businesses to locate their middle and back offices to this more affordable area in Hong Kong."

The buyers must pay stamp duty of about HK$81 million.

Wolff said the firm was aware of government policies imposed in the past three years.

"We understand that the government's intention is to reduce liquidity in the strata title market," said Wolff, referring to the doubling of stamp duty in February on residential and non-residential properties valued at more than HK$200 million.