The project, located at 83 Wing Hong Street in Cheung Sha Wan, has been developed by a joint venture between NWD and Ares SSG, the local unit of US private-equity firm Ares Management, which has a 51 per cent stake in the project. Ares SSG bought the stake from NWD for HK$3.078 billion (US$393.4 million) in September 2022, according to filings made to the Hong Kong stock exchange.
The building has 28 floors, with a total area of 18,946 to 19,216 sq ft on each floor. The first 18 units have been priced from HK$7.2 million to HK$22.7 million, or around HK$12,000 to HK$14,000 per square foot, NWD said in a statement on Thursday. These units range in size from 548 sq ft to 1,626 sq ft of gross floor area.
It also coincides with a delay in highly anticipated cuts to interest rates by the US Federal Reserve. The Hong Kong Monetary Authority, the city’s de facto central bank, has to conduct its monetary policy in lockstep with the Fed to preserve the city’s currency peg with the US dollar, which has been in place since 1983. This means that Hong Kong must keep its rates high if the Fed maintains a high cost of funding.
The delay might stretch into September from earlier expectations of a cut in June, after Fed Chairman Jerome Powell struck a hawkish tone on US inflation, saying that it could take “longer than expected” to get inflation back on target.
More pain for retailers as shoppers spend in Shenzhen, slowing Hong Kong recovery
More pain for retailers as shoppers spend in Shenzhen, slowing Hong Kong recovery
“The office building market is expected to remain challenging in the future,” NWD said in February, during its results announcement for the six months ending on December 31. “Nonetheless, the group’s strategic penetration in non-traditional business districts in recent years is getting close to harvest time.
“The office buildings in Cheung Sha Wan, a district with well-developed infrastructure in support of its close connection with the Greater Bay Area, shall be better positioned to attract more tenants and become a major business district in Hong Kong.”
Wing Hong Street is a former industrial area that is being redeveloped rapidly as a commercial hub. The plot on this street was acquired for HK$2.97 billion in August 2017 and is one of three NWD bought that year for a total of about HK$15 billion. The other two projects located at 888 Lai Chi Kok Road and 83 King Lam Street.
Chinese tycoon Chen Hongtian faces demands from banks on overdue property loans
Chinese tycoon Chen Hongtian faces demands from banks on overdue property loans
