Check out this sales analysis for en-bloc sale of 169 Electric Road

The headroom height deficiency hindered higher price for the site.

According to Colliers, completed in 1990, No. 169 Electric Road is a 37-storey Grade-A office block. The first four levels contain 114 car-parking units while the upper floors -comprising a total of 386,599 sq ft - have been designated for offices.

Given the sizeable floor plate of 10,810 sq ft, the development is occupied by a diversified group of tenants. The Swatch Group, being the anchor of the development, occupies 3 floors in the building.

In October 2012, the entire development was sold by ARA Asset Management to a local investor for a total consideration of HK$3.3 billion. Given the entry price ofHK$2.25 billion two years ago, ARA enjoyed a capital appreciation of over 46% during the period.  

Colliers' View: The whole-block sale of 169 Electric Road, North Point is the second investment transaction being concluded in the month of October 2012 in the same district – the other being the Stanhope House transaction. The main difference is that 169 Electric Road achieved a price 7% higher than Stanhope which was sold for HK$8,004 per sq ft.

The key reasons for the price premium are due to 169 Electric Road being closer to Causeway Bay – the traditional commercial and retail hub on Hong Kong Island - and most office floors on the high zone commands views of the harbour.

Hypothetically, 169 Electric Road could have achieved an even higher price if there were no deficiency on headroom height and redevelopment restriction as the site is on a shared lot with another residential development.

Overall, the transaction substantiates the positive market sentiment that whole-block office developments on Hong Kong Island remain appealing to both end-users (e.g. AIA) and investors.