Prime hotel and industrial building in East Kowloon release for sale

Hong Kong, 4 December 2023 – JLL has been appointed the sole agent of the sale of Hotel COZi Harbour View at 163 Wai Yip Street and the sale of a major portion (56.7% shares) of Jone Mult Industrial Building at 169 Wai Yip Street in Kwun Tong. It offers a rare opportunity in this district to acquire properties with value-added and capital appreciation million potential. The asking prices of the hotel and the industrial building are HKD2.22 billion and HKD180 million, respectively.

Completed in 2007, Hotel COZi Harbour View is a 32-storey hotel that occupies a site area of 19,050 sq ft. It is a rare large-scale hotel in the district with a total gross floor area of approximately 235,300 sq ft, offering 598 guestrooms. The property is situated in one of the major business districts, covering the bustling commercial area of Kwun Tong with a total gross floor area of 13.6 million sq ft as well as the neighbouring Kowloon Bay business district with a total gross floor area of 11.2 million sq ft for office space. With the consistent growth in business activities within the district, the shortage of hotels will become more noticeable. This situation presents a potential for higher appreciation.

In close proximity to the Kwun Tong Promenade, the hotel offers captivating views of the Kai Tak Cruise Terminal on the mid to high-level floors. 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.

Jone Mult Industrial Building, also located at Wai Yip Street, is a 14-storey industry development completed in1965 and 1983 respectively, spanning a site area of 10,200 sq ft. About 56.7% of the ownerships released for sale, which represents a total saleable area of 42,000 sq ft. It is currently offered for sale at HKD4,200 per sq ft, which is approximately 16% lower than the average prices of neighbouring industrial buildings transacted in recent years, typically ranging between HKD5,000 to HKD5,500 per sq ft. The highly competitive pricing is expected to attract buyers for self-use or investment purposes.

According to JLL’s understanding, the individual owners which owned 15% of the total ownerships, have expressed their intention to sell their ownerships. As such, the total ownership could reach 70% when combined with the 56.7% ownership currently offered for sale, which is conducive to future redevelopment.

Both properties enjoy excellent geographical advantages and convenient transportation networks. They are just a few steps away from the MTR Ngau Tau Kok and Kwun Tong stations, as well as various bus routes, providing easy and quick access to all districts. The area is well-equipped with comprehensive facilities, including Grade-A commercial buildings like Manulife Place (previously International Trade Tower) and AIA Kowloon Tower, as well as major shopping centres such as Yue Man Square and apm, all within a 10-minute walk.

Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said, "As the inbound tourism regains momentum following the border reopening, coupled with the government's drive to develop Kai Tak, including the post-pandemic reopening of Kai Tak Cruise Terminal and the imminent completion of the Kai Tak Sports Park and other landmark infrastructure projects, these developments are set to breathe new life into commercial activities and tourism in the district, which, in turn, would benefit the properties for sale with promising capital appreciation potential. The hotel and the industrial building both presenting a rare and exceptional acquisition opportunity to investors and end-users."

For more information, please contact Oscar Chan at 5348-0312.