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News Release

Hong Kong

No. 1 Castle Road for Sale by Public Tender

Sea View Residential Site in Mid-Levels

Jones Lang LaSalle has been appointed by the owner as the sole agent to conduct a public tender sale for No. 1 Castle Road, Mid-Levels, Hong Kong (the Property). The tender will close at 12:00 noon on 30 March 2010 (Tuesday).

No. 1 Castle Road is close to the junction of Castle Road and Caine Road along the fashionable and vibrant Mid-Levels area with the core CBD on its doorstep. Strategically located in Castle Road, the Property is very accessible. It takes only about 1 minute to get to the Central-Mid-Levels Escalator. Various means of public transport such as buses and mini-buses are also readily available.

The Property has a net site area of approximately 3,352 sq ft, and according to the Mid-Levels West Outline Zoning Plan, it is zoned for ‘Residential (Group A)” purposes. The existing development is a 24-storey building completed in 1979. Retail shops are provided on the ground floor and the upper floors consist of residential units. There are 22 residential units in total (including 1 penthouse duplex unit), all of which enjoy an open view. The current residential block has a total GFA of approximately 30,921 sq ft. It is to be sold on an ‘as-is’ basis, and with the benefit of existing tenancies.

Commenting on the tender sale, Warren Liu, Head of Investment Department at Jones Lang LaSalle, said, ‘Demand for new residential developments has been very high. The limited supply and increase in buyer purchasing power has been reflected in recent record-high transactions. New World Development’s newest launch, Belcher’s Hill, recorded an average transaction unit price of HKD 10,000 per sq ft with the highest transacted unit price at about HKD 13,000 per sq ft. Another notable new residential development is Swire Properties’ 5 Star Street, with studio flats on mid to high levels transacting at approximately HKD 18,000 to HKD 23,000.’

In the recent months, the market has demonstrated strong consumer interest in penthouse units, pushing prices to new heights; 39 Conduit Road, located near the junction of Castle Road and Conduit Road (developed by Henderson Land) recorded a transaction with a unit price of approximately HKD 71,000 per sq ft for a duplex unit.

Liu added that ‘developers are continuing to aggressively acquire land in the mid-levels area, looking for opportunities to develop new luxury residential blocks. Swire Properties has been very active in the mid-levels, potential projects in the future involve sites located near the junction of Caine Road and Castle Road as well as sites along Seymour Road.’

The Property’s unique location is ideal for redevelopment of a block of stylish studio flats or whole floor apartment units over 1,000 sq ft. Luxury penthouses with excellent sea views can be constructed on the top floors. Acquisition of the surrounding sites is also a viable option, which would allow the possibility of a larger luxury residential development to be built and increased flexibility on structural designs.

Liu continued, ‘No. 1 Castle Road is a single-owned property in a prime mid-level location. It definitely represents a rare opportunity with plenty of room for various investment plans and strategies. Apart from redeveloping the site, the existing building also has the potential to be converted into a luxury boutique hotel, providing calming retreats upon successful conversion. We strongly believe that this public tender sale will be well-received by developers, private investors and institutional funds alike.’
** Please contact Ms Edith Yip for the images of the property.