Bank-Seized Hung Hom Mega-Podium Sold at 72% Loss After Landing International School Lease
SingTao · 1 SOURCES1 day ago5 MIN
Summary
A three-floor commercial podium at Sea Crest Terrace (海名轩) in Hung Hom has changed hands for approximately HK$323 million, representing a catastrophic 72% loss from its 2018 peak. The 73,820-square-foot property at 11 Hoi Binh Street had become a bank-controlled asset after its previous owner defaulted on loans, sitting vacant for years despite multiple sale attempts. The turning point came when Nord Anglia International School, a globally renowned UK-based educational institution, signed a lease exceeding 10 years earlier this year, with market estimates suggesting monthly rent around HK$2 million. The long-term tenant transformed the distressed property into an attractive investment, with the new owner set to enjoy a yield exceeding 7.4%.
Key Points
- The property comprises floors 3, 5, and 6 at Sea Crest Terrace (海名轩) on 11 Hoi Binh Street in Hung Hom, totaling approximately 73,820 square feet
- Sold for approximately HK$323 million (HK$4,376 per sq ft), down from the 2018 peak of HK$1.16 billion—a loss of HK$837 million or 72%
- Nord Anglia International School, a UK-based international school, signed a 10+ year lease in early 2026; estimated monthly rent is HK$2 million
- Joint marketing by Colliers and Savills valued the property at HK$550-580 million in July 2026; the actual sale price fell well short
- Previous ownership chain: Wang Fu Industrial Trust sold to Lin Zi-feng for HK$886M, then to Pamfleet for HK$1.16B in 2018; Schroders acquired Pamfleet, and Bank of Communications took possession
Why It Matters
The sale illustrates how Hong Kong's commercial property market remains volatile, with major institutional investors absorbing significant losses as values reset from peak levels. The deal also highlights the strategic value of educational institutions as tenants in transforming distressed assets, as the school's long-term lease unlocked the property's investment potential despite its troubled history and ongoing weakness in the retail and commercial leasing market .
The sale illustrates how Hong Kong's commercial property market remains volatile, with major institutional investors absorbing significant losses as values reset from peak levels. The deal also highlights the strategic value of educational institutions as tenants in transforming distressed assets, as the school's long-term lease unlocked the property's investment potential despite its troubled history and ongoing weakness in the retail and commercial leasing market .