Full Breakdown
Hong Kong Veteran Investor Nets $30 Million After 40-Year Hold on Tsim Sha Tsui Retail Portfolio
By Drooid · · How we work
Sale of a Four-Decade Retail Portfolio
Long-time property owner Ng Kan-hoi sold a block of prime street-level shops on Kimberley Road in Tsim Sha Tsui for HK$256.8 million (about US$30.2 million). The transaction, recorded in Land Registry data, represented a price roughly 40 % below the HK$430 million Ng had originally listed. Despite the discount, the sale delivered a profit of nearly HK$237 million—approximately a 12-fold return on the combined HK$19.84 million Ng paid for the properties between 1979 and 1987.
Background of the Holdings
Ng acquired the Cheung Lee Commercial Building and the podium of Wing Lee Building during the late-1970s and mid-1980s, a period marked by tense Sino-British negotiations over Hong Kong’s future and a depressed property market. The Cheung Lee site comprises the basement through the second floor, totaling about 21,871 sq ft, while Wing Lee’s ground-floor shops add roughly 2,731 sq ft. Tenants include the historic Lin Heung Tea House (leasing the first and second floors for about HK$250,000 a month) and Lok Tin Café on the ground floor, with the basement occupied by mainland karaoke chain Mei KTV.
Financial Outcomes and Comparative Sale
The Cheung Lee portion sold for about HK$9,273 per square foot, whereas the Wing Lee shops fetched roughly HK$19,773 per square foot, according to the Land Registry figures. Earlier in the year, Ng disposed of the entire ninth floor of the Far East Finance Centre in Admiralty for around HK$165 million after an 18-year hold and a 38 % price reduction, yielding a modest profit of about HK$11.2 million (? 7 %).
Market Context and Implications
Ng’s ability to secure a substantial return despite a steep discount suggests that long-term ownership of well-located assets can still generate outsized gains, even as short-term market sentiment remains cautious. The sale may encourage other long-hold investors to consider exits, potentially adding modest supply to an already constrained Hong Kong retail property market.