133 Wai Yip Street, aka The Grid, in Kwun Tong (Image: JLL)
A Kowloon East office building owned by Hong Kong fund manager Gaw Capital Partners will go up for auction in September, according to auctioneer JLL.
The 13-storey building at 133 Wai Yip Street in the Kwun Tong area, dubbed The Grid, offers a gross floor area of 192,857 square feet (17,917 square metres) with a typical floor plate of 14,710 square feet, JLL said Monday in a release.
Kwun Tong is an emerging commercial hub and a destination for local and international companies seeking convenient, well-connected and affordable office spaces with appreciation potential, said JLL Hong Kong chairman Joseph Tsang.
“Given its advantageous location, the property is well-positioned to attract quality tenants, making it a compelling investment opportunity for those seeking stable rental income through long-term investment,” Tsang said.
Industrial Conversion
Formerly an industrial property known as the Cheung Fai Building, Gaw acquired 133 Wai Yip Street for HK$930 million ($120 million) in 2013 and converted into an office building with retail space on the ground floor and food and drinks on the first and second floors.
Kenneth Gaw, president and managing principal of Gaw Capital Partners
In 2018, IWG-owned Spaces opened a flexible office centre across the top two floors and penthouse mezzanine of the building, including a rooftop terrace on the 13th floor.
The Grid sits a two-minute walk from Ngau Tau Kok MTR station in a neighbourhood with a mix of Grade A office buildings, shopping malls and diverse retail outlets and dining options, JLL said.
The 1969-vintage property is to be sold on an “as-is” basis and is subject to existing tenancies and licences. The sale includes the fixtures, fittings and chattels.
The public auction will take place on 4 September at 11am in JLL’s office at One Taikoo Place.
Challenging Environment
The news comes three weeks after Mingtiandi reported that closely held Gaw was preparing to acquire the 35 percent stake that it does not yet own in Cityplaza Three and Cityplaza Four, a pair of office buildings on the eastern end of Hong Kong Island, via a public auction.
Gaw would be taking over the stake in the 1 million square foot complex from Hengli Investment Holdings just under six years after it joined the private firm controlled by investor Chen Changwei in acquiring the pair of buildings from Swire Properties in a $1.9 billion deal.
With Hong Kong’s office market facing record low occupancy, Hengli since late last year has failed to make its share of payments on a loan on the property, with Gaw having covered the obligation on behalf of its partner.
With that obligation continuing to be unfulfilled, the private equity firm is now positioned to take full ownership of the property.
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