HONG KONG, April 16 /Xinhua-PRNewswire/ -- ING Real Estate announced today that it has signed a sale and purchase agreement to acquire an industrial building in Kowloon Bay for a consideration of approximately HKD220 million (USD28 million). The Chuan Hing Industrial Building will be purchased on a yield of 3.8% and an average rental of HK$7 per square foot compared with HK$8-10 for industrial buildings with similar building age in the same district.
"We are pleased that we have the opportunity to acquire an industrial building with such good investment potential for both rental and capital gain. The building will be thoroughly refurbished, actively managed, and is set to benefit from the urban rejuvenation and transformation of Kowloon Bay from an industrial district into an office hub," stated Dr. Robert Lie, CEO of ING Real Estate Investment Management Asia.
Kowloon Bay is currently undergoing a major facelift with the construction of new Grade-A office buildings and two large-scale shopping malls expected to start in mid-2007. The building will also enjoy long-term capital growth potential with the redevelopment of the Kai Tak Airport site, the largest remaining urban site in Hong Kong, which when completed will transform the whole district into one of the Hong Kong's biggest commercial, tourist and entertainment locations.
Lie added, "A rejuvenated Kowloon Bay could strengthen the capital growth performance of the Chuan Hing Industrial Building, and feasibly allow its redevelopment into an office building or hotel in the long term."
Located in Kowloon Bay, the Chuan Hing Industrial Building is about ten minutes' walking distance from the Mass Transit Railway station (Hong Kong's underground system) and is well connected to other public transport networks. With a total gross floor area of 159,273 square foot, the building is a 10-storey industrial/warehouse building with 7 lorry parking spaces, 8 van parking spaces, loading and unloading space on the ground floor.
ING Real Estate is an international real estate company active in real estate investment management, development and finance. With a total business portfolio of USD120 billion and offices in 21 markets in Europe, North America, Asia and Australia, ING Real Estate ranks among the world's strongest real estate companies.
ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries.
Press enquiries:
Karen Williams
Tel: +852-9106-1350
Email: karen.williams@ap.ing.com
Tony Wong
Tel: +852-6687-7852
Email: tony.wong@ap.ing.com
Wieger Sietsma
Tel: +31-70-3418474
Email: wieger.sietsma@ingrealestate.com
