Lucrative opportunities to acquire a community mall in an attractive location and retail units in a traditional core shopping neighbourhood.
Colliers has been appointed as sole agent by the landlord to sell Siu Lun Shopping Centre in Tuen Mun and retail units at Park Lane Shopper's Boulevard in Tsim Sha Tsui via an expression of interest process. The assets are to be sold on an “as-is” basis with partial existing tenancies. The Expression of interest (EOI) closing date is on Thursday, 7 September 2023, 12:00 noon.
[Property 1]: Located at 3 Siu Hing Lane in Tuen Mun, Siu Lun Shopping Centre occupies a total gross floor area of about 45,914 sq. ft.. With sales driven by strong domestic consumption, current tenants of this community mall include large supermarket and restaurant chains will generate considerable rental income.
[Property 2]: The retail units for sale include shop number 29-30 on the ground floor and shop number 15 on the first floor of section D at Park Lane Shopper's Boulevard on 111-181 Nathan Road, Tsim Sha Tsui. With a gross floor area of 3,740 sq. ft., the property is situated in a traditional prime location that faces Kimberley Road and The Mira Hong Kong. The application made by the Incorporated Owners of Park Lane Shopper's Boulevard of converting land to "eating place (cafeteria, coffee shop and tea house)" and "shop and services" has been approved by the Town Planning Board last October.
Retail leads the way in economic recovery as border fully reopens
Roy Chan, Senior Director of Capital Market & Investment Services, Colliers | Hong Kong, said: “The reopening of Hong Kong-mainland China border earlier this year has boosted retail sales, market sentiment and shop transactions, with plenty of big-ticket deals being concluded. Examples include the retail podium of Florient Rise in Tai Kok Tsui bought by Sunlight REIT at HK$748 million from local veteran investor Francis Law Sau-fai, One Kai Tak (I) and One Kai Tak (II)’s retail component purchased by Uni-China at HK$650 million from China Overseas Land, and the shopping arcade at podium level of COO Residence in Tuen Mun originally owned by CSI Properties being sold at HK$440 million. These transactions reflect strong investor appetite for retail properties and a positive market outlook.
The properties for sale include Siu Lun Shopping Centre in Tuen Mun [Property 1] and retail units at Park Lane Shopper's Boulevard in Tsim Sha Tsui [Property 2]. Property 1 is a community mall and generates considerable rental income backed by the spending power of neighbourhood customers, presenting a lucrative opportunity for investors. Property 2 is located at Park Lane Shopper's Boulevard in Tsim Sha Tsui, a traditional prime area for retail, which the industry has seen a swift rebound since the border with mainland China fully reopened and Hong Kong started to make its way out of the Covid-19 blues. Before the pandemic, the Incorporated Owners of Park Lane Shopper's Boulevard submitted a land-use conversion application to the Town Planning Board from "open space" to "eating place (cafeteria, coffee shop and tea house)" and "shop and services" and successfully secured approval last October, with a 50% limit of the total floor area to be used as an eating place. The city’s landmark destination is all set to become the Champs-Élysées in Hong Kong.
The return of inbound visitors, along with the lifting of the mask mandate, helped boost a 20% to 60% growth in retail sales across different segments in the first quarter. Leasing activity of large retail space in core districts is on the rise. Retailers show growing confidence and continue to expand as the city welcomes back more tourists and coupled with shop rental adjustment, some opt for larger spaces. Colliers predicts that annual rental rate for stores in core retail districts will see a year-on-year growth of 8%.