Hong Kong’s biggest industrial investment deal in Q4 revealed

It was valued at HK$850 million.

The rate hikes dampened investment interest in Hong Kong’s industrial property sector, though according to Savills, experienced investors and end users were still purchasing selectively. 

The largest deal of the last quarter of 2022 was the purchase of the en-bloc Novel Industrial Building in Cheung Sha Wan by the JV of Blackstone and Storefriendly for HK$850 million, with the view to Storefriendly utilising the space for their operations. 

Here’s more from Savills:

Another self-storage operator, StorHub, also made their move to buy a further three floors in Precious Industrial Centre for HK$164.265 million, expanding their holding in the building after they bought around 70,000 sq ft of space in January last year. 

Meanwhile, Goodman continued their quest in the stratified market by purchasing a basement floor of Sunshine Kowloon Bay Cargo Centre for HK$111 million. 

The investment transaction volume of stratified industrial premises continued to decline due to the rising cost of funds and declining rental returns, with the entire fourth quarter recording 285 industrial transactions, a 66% YoY decline. Flatted factory and warehouse prices registered 0.9% and 2.4% declines over the quarter as a result.