Murray Building in Central to be put out to tender at last
Tenders for tower in Central of up to HK$4.23b expected more than three years after proposal to convert it into a luxury hotel was announced
The Murray Building in Central is finally being put out to tender, more than three years after the government proposed selling it for conversion into a luxury hotel.
Surveyors expect the 27-storey tower to attract keen interest from developers and hotel operators who should be willing to pay between HK$3.25 billion and HK$4.23 billion - or HK$10,000 to HK$13,000 per sq ft - for the site.
Vincent Cheung Kiu-cho, national director of Greater China at property consultancy Cushman & Wakefield, said: "The location is very attractive. The room rate for the three neighbouring top hotels in Admiralty is between HK$5,000 and HK$7,000 per night, a few times higher than the average of over HK$1,000 per room in the industry."
Cheung expects the building to sell for HK$4.23 billion. But he worried whether the conversion would allow the construction of facilities such as a swimming pool, or if the floor height of the lobby will be high enough for conversion into a five-star hotel.
According to the Lands Department, the Murray Building site covers an area of 68,136 sq ft and its maximum gross floor area is 325,070 sq ft.
Final conditions of sale for the building will be available by June 28, when the tender will commence. The tender will close on October 25. "The tender response should be good, given that the site is located in a high-end location next to many tourist spots such as the Peak Tram station and Hong Kong Park," Midland Surveyors director Alvin Lam Tsz-pun said.
"Also, it should offer an open view," he said, adding that the site should be worth about HK$3.25 billion.