Tuesday, 16 May 2017

Number of the Day: US$3 Billion

The Murray Road car park (right) sold today for US$3 billion
Land is getting even more expensive in Hong Kong, with today's sale of the Murray Road car park for a staggering US$3 billion (HK$23.28 billion). That works out to HK$50,064 per square foot.


The government building was sold to Henderson Land
The record up to now was a grade-A office space at 9 Queens Road Central sold in April for HK$145.82 million, or HK$39,800 per square foot.

The buyer of Murray Road, Henderson Land Development, run by Lee Shau-kee and his family, beat out eight rival bids, in particular mainland developers who are now strangled from getting money out of China these days.

Henderson Land plans to develop the multi-storey car park into -- what else -- a commercial building the company describes as "a landmark building" that will be completed in 2022.

Analysts are already speculating multinational and mainland firms will occupy that office space.

There's a convenient walkway from Central to Admiralty
So while car owners already have one less place to park their cars in Central (it closed a few weeks ago), pedestrians will lose a convenient thoroughfare, as it provided an easy short cut to Admiralty and the edge of Central.

By the way -- now that the government will have another US$3 billion in its coffers, how about using those proceeds towards building social housing? Seems like the most decent thing the authorities could do...

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