CBRE Sells Tang Family's Sai Kung Industrial Buildings for Creditors at Steep Loss
AM730 · 1 SOURCESabout 2 hours ago2 MIN
Summary
CBRE has been appointed as exclusive agent to sell two entire industrial buildings at 2 and 9 Hing On Lane in Sai Kung, New Territories, originally held by the Tang Shing-bor family. The Tang family acquired these properties in 2018 and 2019 for approximately HK$329 million and HK$250 million respectively, representing an average price of HK$5,117 per square foot. A comparable transaction in July 2024 for a neighbouring building at 1 Hing On Lane fetched only HK$1,720 per square foot, suggesting a potential loss exceeding 60% for the original owners .
Key Points
- CBRE's Capital Markets Division Executive Director Andrew Mok Wai-ho revealed that the Tang family originally held five industrial buildings on Hing On Lane in Sai Kung
- The family purchased 2 Hing On Lane in 2018 for approximately HK$329 million and 9 Hing On Lane in 2019 for approximately HK$250 million, with an average price of HK$5,117 per square foot
- In July 2024, 1 Hing On Lane was sold to a local investor for approximately HK$173 million, covering a gross area of approximately 100,000 square feet at HK$1,720 per square foot
- The properties currently serve as warehouses and office space, standing 3 to 4 storeys with ceiling heights reaching 4.4 metres and floor loading capacity of 15kpa
- The land is zoned "Residential (Group E) 1", allowing buyers to apply to the Town Planning Board for residential redevelopment to enhance asset value
Why It Matters
This transaction signals ongoing distress in Hong Kong's industrial property market, with comparable buildings in key industrial zones like Tsing Yi, Fanling, and Tai Wai trading at HK$2,100 to HK$3,000 per square foot in 2025. The steep 66% decline from original purchase prices underscores how market conditions have shifted, potentially attracting value-seeking buyers for alternative uses such as data centres, cold storage facilities, or mini-warehouses while raising questions about the Tang family's broader asset restructuring strategy .
This transaction signals ongoing distress in Hong Kong's industrial property market, with comparable buildings in key industrial zones like Tsing Yi, Fanling, and Tai Wai trading at HK$2,100 to HK$3,000 per square foot in 2025. The steep 66% decline from original purchase prices underscores how market conditions have shifted, potentially attracting value-seeking buyers for alternative uses such as data centres, cold storage facilities, or mini-warehouses while raising questions about the Tang family's broader asset restructuring strategy .