The Yonglun Group has recently sold a full floor at Yumingshall in Central for 39 million HKD, marking a holding period of 25 years. The property, which was originally acquired in May 2001 for 4.26 million HKD, has seen a significant appreciation of over 8.15 times. The average price per square foot is approximately 9,750 HKD. Yonglun Group has been frequently disposing of properties at reduced prices, even at a loss, in recent years. However, some of the earlier acquisitions, such as the one at Yumingshall, have still brought in substantial profits. Additionally, the group sold a large shop unit in Tai Po Kai Tak Building for 105 million HKD in an earlier transaction, which they bought in 1997 for 95 million HKD. The sale is part of Yonglun Group's strategy to restructure its property portfolio, focusing on core commercial areas. Meanwhile, the group is currently seeking buyers for its ongoing reconstruction project on Kingem Road in Tsim Sha Tsui, previously planned to be a 28-storey building and hotel, with plans for commercial and dining spaces at the ground to eighth floors. The properties are now on the market as is, with a market value of approximately 110 million HKD.
The group has been divesting properties in various locations including North Point, Sham Shui Po, and Tuen Mun to generate cash flow. This ongoing liquidation of assets and the search for new buyers for its reconstruction project reflect the group's strategic shifts in property investment and management.
This transaction highlights the significant appreciation potential of prime locations in the Hong Kong central business district. As Yonglun Group continues its efforts to restructure its property portfolio, these sales indicate a long-term strategy to optimize the value of its remaining assets. The company is currently looking for a buyer to complete the development of its Tsim Sha Tsui project, a move that aligns with its broader property strategy.