Business
Snack Food Giant Four Seas Capitalizes on Hong Kong Commercial Real Estate Slump: Acquires Prime Office Space in Kowloon Below Market Rates
Four Seas, a snack food manufacturer, has acquired office space in Hong Kong, attracted by discounted prices. Office buildings of Grade A quality in Kowloon have experienced a nearly 50% decrease in value since the market's height in late 2018.
The maker of snack foods has decided to purchase 25,000 square feet worth of office space in Kwun Tong for a sum of HK$205.4 million or US$26.3 million, as reported in a filing on the Hong Kong stock exchange on Monday. This translates to HK$8,226 for each square foot, which is 12.5% less than the original price asked for the same location in the building.
"Chairman Stephen Tai Tak-fung stated in the filing that due to low demand and a poor market outlook, the cost of some commercial properties in Hong Kong has dropped substantially to a comparatively low point. He believes that this presents a beneficial investment opportunity."
The team consented to purchase the whole of the 31st level of a premium office structure located at 41 King Yip Street, inclusive of naming rights, in addition to another office space on the 21st level of a building referred to as The Vision within the same vicinity. Their acquisition also encompasses seven parking spots and specific areas for advertising.
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The Hidden Aesthetics: An Indepth Examination of Hong Kong's Public Housing Complexes is Warranted
The vendor is a division of Max Paramount Business, a foreign corporation ultimately under the ownership of someone named Choi Kin-yeung.
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