MARKETING agent C. Y. Leung & Co expects to have little trouble attracting buyers or tenants to the 21-storey Charmay Centre in Kwai Chung despite an estimated vacancy rate approaching 30 per cent in the industrial sector. Stephen Yeung Chou-yau, assistant manager of the agency's industrial division, said there were no other new industrial buildings due to be completed soon in the area, so the centre would have virtually no competition in attracting local users wanting to upgrade. 'The demand will come from people already located in the area,' he said. According to C. Y. Leung executives, many manufacturers cannot meet their ancillary office needs in older buildings because of the size of units or because the lift-lobby layout is unsuitable. Mr Yeung and other agents estimate that most of the existing industrial stock in the Kwai Chung area is between 10 and 20 years old and not up to requirements of modern industrial companies. He said the Charmay Centre was not only a 'better looking' building than much of the existing stock in the area, but was more suited to the purposes of modern industrial space users. C. Y. Leung marketing co-ordinator Bennett Wong Bay-lun said that the building's closeness to the Mass Transit Railway stations in Kwai Fong and Kwai Hong should help it attract end-users. Good transport connections to all parts of the territory were available via Kwai Chung Road, the Western Kowloon Tunnel, New Territories Circular Road and the Tuen Mun Highway, he said. With the completion of the Western Harbour Crossing, Route Three, the new Airport Railway and related networks, Kwai Chung will be at the heart of a comprehensive and convenient transportation network, according to C. Y. Leung. Space in the building could be either leased or bought, Mr Yeung said. The developer is also selling floor space, which could be bought by the unit or by the floor for about $1,400 per square foot. Rents begin at $7 per sq ft to $10 per sq ft a month. Units, which come in four different sizes, or whole floors could be leased. Rents were even cheaper if a tenant considered leasing for only one year, he said. Mr Yeung said it was possible to find cheaper space in the Kwai Chung area, with some buildings leasing for $3 to $4 per sq ft, while in China it was possible to lease 100,000 sq ft of space for less than $1 a sq ft, he said. 'It is possible to go to China and find something much cheaper because of the cheap land and labour,' said Mr Yeung. 'But because the quality of labour in Hong Kong is better, manufacturers realise that it is a good idea to keep the sample rooms in Hong Kong.' Even with an estimated four million sq ft of industrial-office (I/O) space due to be completed during this year, Mr Yeung did not think it would have much impact upon the industrial sector. He said the I/O supply would appeal to commercial space users wanting to downgrade. C. Y. Leung officials said there had been a good response to the building on both the leasing and sales front with a couple of floors under negotiation. Mr Yeung said he expected interest to blossom after the Lunar New Year. FACT FILE: DEVELOPMENT: Charmay Centre, an 21-storey industrial building at 12-14 Ka Hing Road in Kwai Chung DEVELOPER: Charmay Development TOTAL NUMBER OF UNITS FOR LEASE: 80 SIZE OF UNITS: 1,061 square feet; 687 sq ft; 455 sq ft; 413 sq ft (all figures gross) RENT OR BUY: Can lease at $7 to $10 per sq ft a month or buy at $1,400 per sq ft on individual units or whole floors DEVELOPMENT SITE AREA: 5,016 sq ft LEASING AGENT: C Y Leung & Co AMENITIES: Close to Kwai Fong and Kwai Hing MTR stations.
