Real Estate

Hong Kong ‘Shop King’ Tang Shing-bor’s family to raise US$310 million by selling assets including a hotel at a 28% discount

The family of late “Shop King” Tang Shing-bor is raising HK$2.4 billion (US$310 million) by selling a hotel at a 28 per cent discount and disposing of a majority stake in an East Kowloon industrial building, as it continues an asset selling campaign which began at the height of the Covid-19 pandemic in 2020.

The family has offered the 598-room Hotel Cozi Harbour View in Kwun Tong for sale at a price of HK$2.22 billion, a discount of 28 per cent or HK$880 million to its asking price of HK$3.1 billion in March last year. It is also selling a 56.7 per cent stake in the Jone Mult Industrial Building at 169 Wai Yip Street in Kwun Tong for HK$180 million.

Completed in 2007, Hotel Cozi Harbour View at 163 Wai Yip Street is a 32-storey hotel that occupies a site area of 19,050 sq ft. Its total gross floor area of around 235,300 sq ft hosts 598 guestrooms.

“With the consistent growth in business activities within the district, the shortage of hotels will become more noticeable,” property agent JLL said in a statement on Monday. “This situation presents a potential for higher appreciation.”

“Apart from continuing to be used as a hotel, the property also has the potential to be reimagined as student dormitories to meet the growing demand in the market, or to be transformed into talent apartments to seize the opportunities brought by the government’s talent attraction scheme.”

Hotel Cozi Harbour View. Photo: Google map

The 14-storey Jone Mult Industrial Building is an industry development spanning a site area of 10,200 sq ft. The 56.7 per cent stake released for sale represents a total saleable area of 42,000 sq ft. It is currently on sale at HK$4,200 per square foot, which is around 16 per cent lower than the average transaction price of neighbouring industrial buildings in recent years, according to JLL.

JLL has been appointed the sole agent for the sale.

Veteran investors use non-residential sector recovery to exit Hong Kong holdings

Since Tang’s death in May 2021, the family has sold dozens of real estate assets, ranging from en bloc properties and shops, to offices and parking spaces, some of them at huge losses.

The family put up two hotels for sale this year. The 199-room Hotel Ease Mong Kok went on sale in July, after the 119-room Hotel Ease Lai Chi Kok was put on the market the previous month.

The Tang family put the Hotel Ease Mong Kok on sale for HK$730 million, according to Colliers, the sole agent for the sale. That is a discount of more than 30 per cent from its acquisition price of HK$1.1 billion in 2018, according to government records.

A local investor had bought the asset for HK$560 million, Colliers said in a report in October, about half the 2018 price tag.

Hotel Ease Lai Chi Kok, the 21-storey property, which was refurbished last year, is estimated to be worth HK$410 million, according to JLL, the sole agent for the sale.


Business Asia
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