Derelict buildings on prime site in Causeway Bay may finally be in line for redevelopment as two families sell their minority stake for up to HK$1.8 billion

A 20 per cent share of the plot in one of the Hong Kong’s busiest shopping districts will be put up for tender, potentially netting the two owners HK$1.8 billion (US$231 million)

It clears the way for the majority owner to buy the stake and force the sale of the remainder of the plot for renovation

2-MIN READ2-MIN

Most units in the building, pictured, have been left empty, while ground level shops have been leased to different retailers. Photo: SCMP Handout

Published: 7:30am, 17 Aug 2021Updated: 7:30am, 17 Aug 2021

The final hurdle standing in the way of plans to redevelop three dilapidated buildings in the heart of Causeway Bay may soon be cleared.

Two families have decided to auction off their 20 per cent stake in the plot in one of the Hong Kong’s busiest commercial districts, in a move that could pave the way for refurbishment if the majority owner successfully bids for it.

According to property agents, the majority shareholder owns 70 per cent of the site, and the further 20 per cent would give it the legal right to force a compulsory auction of the remainder.

The units at the junction of Percival Street, Russell Street – once the world’s most expensive retail location – and Lee Garden Road, will be put up for tender, according to sole agent JLL, and could pocket the owners HK$1.8 billion (US$231 million).

“The value of these properties will be very high as it is in the core centre of Hong Kong’s busiest district,” said Joseph Tsang, chairman of JLL Hong Kong.