Kwun Tong property offered for $220m

Asset has approval for conversion into a 128-bed student hostel.

A portfolio of properties at 90 Hung To Road, Kwun Tong, is being offered at an indicative price of about $220m, with Centaline Commercial and CBRE appointed as joint sole agents for the sale.

The portfolio comprises part of the ground floor entrance area, the entire 1/F to 7/F, and the rooftop, according to Steve Fung, Senior Associate Sales Director of Capital Markets at Centaline Commercial.

The site area is about 5,000 square feet (sq ft), with a total gross floor area of around 32,900 sq ft, subject to verification.

The eight-storey corner building has unobstructed views of the Tsui Ping River, whilst its lobby has a staircase and two passenger lifts, Fung said.

The property received approval earlier this year for conversion into a student hostel providing 128 beds.

“The supply of whole-building properties with student accommodation development potential that have already completed the requisite planning and usage approvals remains extremely limited in the market,” Reeves Yan, Executive Director and Head of Capital Markets at CBRE Hong Kong, said.

Kwun Tong has also seen successful conversions of hotels and commercial buildings into student accommodation, reflecting demand for student housing in East Kowloon.

Student accommodation has attracted growing interest from institutional investors, family offices, and professional operators in recent years, according to the joint agents.

With limited availability of prime traditional assets in core districts, investment is increasingly shifting towards alternative assets, including student accommodation.

Yan said the property is near Kwun Tong MTR Station and the Eastern Harbour Crossing, providing access to major universities and educational institutions.

The surrounding area has shopping malls, dining outlets, and retail amenities, offering students access to accommodation and daily lifestyle needs, Yan said.

“In addition to its solid conversion potential, the property comes with approved student hostel plans, which can substantially shorten the development timeline for a new owner,” Fung said.

Yan expects the property to attract interest from investment funds, family offices, education operators, and developers.