Amazon unit and Shorea Capital acquisitions highlight sustained foreign interest in Hong Kong commercial property
SCMP · 1 SOURCESabout 2 hours ago3 MIN
Summary
Foreign investors continue to pour capital into Hong Kong's commercial real estate sector, with a unit of online retail giant Amazon and Singapore-headquartered Shorea Capital emerging as the latest buyers of assets in the city. Shorea Capital secured The Pemberton, a mixed office and retail property in Sheung Wan, through a competitive tender process, with property consultancy Colliers acting as the lead agent and broker for the transaction . The Singapore-based firm plans to submit applications to convert the 24-storey commercial building into high-quality living accommodation, aiming to address what industry observers describe as a structural shortage of such housing in Hong Kong. The deal highlights sustained demand from Southeast Asian investors for prime Hong Kong real estate assets, even as the market navigates broader economic headwinds.
Key Points
- Shorea Capital won the tender for The Pemberton, a 24-storey mixed-use property at 22-26 Aberdeen Street in Sheung Wan, with Colliers serving as lead agent and broker
- The property spans a gross floor area of 5,388 square metres (58,000 square feet), with five levels of commercial space including basement, upper ground, and floors one to three
- The building was previously sold to AEW Via HK 1 Limited for approximately HK$344.34 million (US$43.9 million) in a transaction registered with the Land Registry in 2010
- Office floors from the fourth level upward feature a glass curtain wall facade with flexible floor plates ranging from 214 to 409 square metres each
- Shorea CEO Eugene Teo stated that the acquisition provides a strong entry point, combining a well-connected location with long leasehold tenure and value-creation potential through repositioning
Why It Matters
The acquisitions signal continued confidence among international and regional investors in Hong Kong's commercial property market, despite ongoing macroeconomic uncertainties. Shorea Capital's plan to convert the asset into residential use reflects a broader trend of repurposing commercial buildings to alleviate the city's acute housing shortage, potentially setting a precedent for similar transformations in core urban districts .
Andrew Ng, head of restructuring services and executive director for capital markets and investment services at Colliers, noted that the deal demonstrates continued investor appetite for well-located assets with strong repositioning potential in Hong Kong's core urban districts, reinforcing the city's status as a premier destination for real estate capital from Southeast Asia and beyond .
The acquisitions signal continued confidence among international and regional investors in Hong Kong's commercial property market, despite ongoing macroeconomic uncertainties. Shorea Capital's plan to convert the asset into residential use reflects a broader trend of repurposing commercial buildings to alleviate the city's acute housing shortage, potentially setting a precedent for similar transformations in core urban districts .
Andrew Ng, head of restructuring services and executive director for capital markets and investment services at Colliers, noted that the deal demonstrates continued investor appetite for well-located assets with strong repositioning potential in Hong Kong's core urban districts, reinforcing the city's status as a premier destination for real estate capital from Southeast Asia and beyond .