‘Rare’ Tsim Sha Tsui retail flagship hits market at $430m

Cheung Lee Commercial Building and five Wing Lee shops make up the portfolio.

A retail property portfolio in Hong Kong's Tsim Sha Tsui district, with a combined market valuation of about $430m, has been put up for sale, with CBRE appointed as sole agent.

The sale comprises the entire basement to second floor of Cheung Lee Commercial Building at 25 Kimberley Road, spanning about 21,871 square feet (sq ft) and valued at about $340m.

It also includes five ground-floor shops at Wing Lee Building at 27-31C Kimberley Road, covering about 2,731 sq ft and valued at about $90m.

The fully leased properties are located at the junction of Carnarvon Road and Kimberley Road, opposite Mira Place and adjacent to Knutsford Terrace in Tsim Sha Tsui.

Tenants at Cheung Lee Commercial Building include restaurant Lok Tin Café, century-old restaurant brand Lin Heung Lau, and mainland karaoke chain MEI KTV, whilst the ground-floor shops at Wing Lee Building are leased to Aberdeen Fishball Noodles Restaurant.

"Street-level flagship retail spaces exceeding 20,000 sq ft in Tsim Sha Tsui's core district are extremely rare," said Zac Wong, Senior Director of Capital Markets at CBRE Hong Kong.

Wong said the redevelopment of nearby Champagne Court into a five-star hotel could increase the strategic and investment value of the asset, subject to government approval.

The owner is also open to discussing strata-title sales in addition to an en-bloc transaction, according to CBRE.