Property developers are showing an increased interest in buying old colonial-style historic buildings as long-term investments.
Once reluctant to buy such buildings in the absence of an unambiguous government policy on their status and uncertainty over their future potential, developers are now throwing those cautions to the winds.
At the end of last month, Ryoden Development bought the official residence of the French government at 8 Pollock's Path on The Peak for HK$580 million. Based on the sales and purchase agreement, the house will be leased back to Paris for a monthly rent of HK$250,000 for two years - a below-market rate.
The house was built between 1880 and 1890 and is listed as a grade two historic building by the Antiquities and Monuments Office, which says demolition or building work such as alternations or renovations works that may affect the heritage value is 'not encouraged'.
Earlier this year, Couture Homes, the new residential arm of listed CSI Properties, bought the nearly 80-year-old Villa Blanca at 47 Barker Road on The Peak for HK$200 million for a long-term investment.
'We will renovate the house soon for leasing, as it is too old. But we won't change the layout and the exterior,' said Jimmy Fong, Couture's managing director.
He expects the property, which commands a view of Victoria Harbour, to be leased for more than HK$250,000 a month.
