Snack Giant Four Seas Capitalizes on Falling Office Prices in Kowloon, Acquiring Prime Space for a Bargain

Four Seas, a snack food manufacturer, has acquired office space in Hong Kong, attracted by the currently low prices. Premium office buildings in Kowloon have seen their value decrease by approximately 50% since the market reached its high point in late 2018.

The company that produces snack foods has confirmed the purchase of office spaces measuring 25,000 square feet in Kwun Tong for a sum of HK$205.4 million (US$26.3 million), as stated in a filing with the Hong Kong stock exchange on Monday. The cost comes down to HK$8,226 for each square foot, which is a 12.5% reduction from the original price quoted for the same structure.

"Due to sluggish market demand and a subdued business environment, the value of some commercial properties in Hong Kong has dropped considerably to a notably low point," stated chairman Stephen Tai Tak-fung in the report. "This purchase offers a solid investment opportunity."

The team consented to purchase the whole of the 31st level in a premium office complex located at 41 King Yip Street, including naming rights, along with an additional office space on the 21st level of a building referred to as The Vision within the same vicinity. The deal also encompasses seven parking slots and specific areas for signages.

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The vendor is a division of Max Paramount Business, a foreign company that is ultimately under the ownership of an individual named Choi Kin-yeung.