Veteran buyer sees Elizabeth House as long-term investment
Veteran investor Lun Chi-yim, 70, made a surprise move last week by buying the Elizabeth House commercial complex in Causeway Bay for $1.48 billion from locally listed firm Mexan.
Mr Lun, founder and chairman of Winland Group, stunned the market by paying 10 per cent more than last year's aborted sale to Kowloon Development of the seven-storey shopping arcade and 175 parking spaces. The gross floor area of the Elizabeth House shopping arcade, at 250-254 Gloucester Road, is 235,000 sqft, and the price was $6,297 per sqft. Mr Lun's aggressive bid reflects his confidence in the retail leasing market.
'It was a quick decision,' he said. 'It took about 10 days to do everything, from due diligence to arranging the finances, after I gave the go ahead.'
Mr Lun, whose investment portfolio includes more than 300 properties, said the shopping arcade would be kept as a long-term investment. 'The retail complex will boost our rental income.'
The deal has still to be approved by the Hong Kong stock exchange and Mexan shareholders.
Last October, hotel operator Mexan (formerly Asean Resources) agreed to sell the Elizabeth House arcade to Kowloon Development for $1.34 billion but pulled out of the deal two months later because it had failed to meet asset-disposal requirements under listing rules.
