Centurion expands Hong Kong presence with $59.4m building acquisition

The asset contains 42 apartments and nine commercial units.

Centurion Corporation has agreed to acquire Yan Woo Building, a 26-storey commercial and residential building in North Point, Hong Kong, for $59.4m (HK$364m).

The acquisition will be made through a 50:50 joint venture with Centurion Properties, Centurion’s controlling shareholder. It is expected to expand Centurion’s rental accommodation presence in Hong Kong.

The building comprises 42 apartment units and nine commercial units, with about 34,286 square feet (sq ft) of gross floor area (GFA).

The commercial units occupy the ground to second floors and are leased to food and beverage, pharmacy, telecommunications, veterinary services, and convenience store operators.

Centurion plans to carry out addition and alteration works on the 42 apartments before renting them out as residential accommodation.

“The entry price is attractive relative to the underlying value of the asset, and the property gives us a base of recurring income, whilst we carry out enhancement works on the residential floors,” said Kong Chee Min, CEO of Centurion Corporation.

The building sits at the junction of Java Road and Tong Shui Road in North Point.

It is a three-minute walk from North Point MTR station and is close to the North Point Promenade, North Point Tram Terminus and Java Road Market.

Completed in 2000, Yan Woo Building has about 26,070 sq ft of residential GFA and 8,216 sq ft of commercial GFA.

The site is held under a 75-year government lease from 5 September 1921, renewable for another 75 years.

(HK$1 = SG$0.16)