Hong Kong property

Sham Shui Po mall Golden Digital opens for sale

Agents say with refurbishment and tenant remix, the three-storey complex could provide a rental yield ranging between 2.5pc to 3pc

PUBLISHED : Wednesday, 06 September, 2017, 1:26pm
UPDATED : Friday, 06 October, 2017, 9:21pm

The three-storey retail complex known as the Golden Digital in Sham Shui Po has been put up for sale with an asking price of HK$900 million (US$115 million), or roughly HK$25,000 per square foot, according to agents.

The retail arcade at the intersection of Yen Chow Street and Fuk Wing Street could generate monthly rental income of up to HK$2.4 million after rebranding and tenant restructuring, said Alfred Wong Wing-chun, associate director of capital markets and investment services at Colliers International.

“The region is a famous hot spot for computers, electronics, accessories and food and beverage,” said Wong. “There is growth potential among young and high-spending customers with about 4,000 new flats completed within 1 kilometre of the mall. Walking to the nearby Sham Shui Po MTR station only takes about a couple of minutes.”

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Also nearby is the campus of Savannah College of Art and Design, a US-based arts school located at the former magistrates’ court building, as well as the headquarters of the Garden Company, which has a pending application for redevelopment into a 25-storey commercial and office tower.

Another nearby attraction is the Golden Computer Centre, which is well known as a shopping hub for computers, games and digital cameras.

“These two places will help drive Golden Digital to become a single-ownership hub of catering, consumption and entertainment,” Wong said.

Currently, the mall’s basement is occupied by supermarket chain Wellcome, while the ground floor is occupied by restaurants and retail shops such as Bank of Communications and convenience store Watsons. The upper floor is occupied by a Chinese hotpot restaurant.

“Rental incomes are stable and easily predictable,” Wong said.

Consisting of the basement, ground floor, upper floor and facade, the sale includes gross floor area of 24,700 sq ft, with more than 8,000 sq ft on each floor.

“As the region’s development matures and spending power increases, the mall will enjoy good chances of increases in rental incomes. As the investor owns the entire mall, he or she can increase rental income and reposition the mall by changing tenant mix,” Wong said.

Thomas Lam, senior director at Knight Frank said based on preliminary information, the unit rate looks reasonable.

“I guess the yield return is about 2.5 per cent to 3 per cent,” Lam said. “It takes time to do tenant-remix and repositioning in order to achieve a higher market rent.”