Gaw Capital’s auction of Hong Kong commercial tower has buyers interested

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133 Wai Yip, which was acquired in 2013 for HK$930 million (US$119 million), could fetch as much as HK$1.45 billion, according to Vincorn Consulting’s estimates

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Gaw Capital has put 133 Wai Yip in Kwun Tong for sale via auction. Photo: Handout

Cheryl Arcibal

Published: 9:30am, 23 Jul 2024

A mixed-use commercial building in Kowloon’s Kwun Tong district is on the market, with the owners likely to get a 50 per cent return on investment made a decade ago, according to one estimate.

Hong Kong-based private equity firm Gaw Capital and its partners could get as much as HK$1.45 billion (US$186 million) for the former 13-storey industrial building with an area of 193,000 sq ft, according to Vincorn Consulting and Appraisal.

133 Wai Yip, which was acquired by Gaw Capital in 2013 for HK$930 million, is scheduled to be sold at an auction on September 4, according to JLL, the designated auctioneer. The auction will be held at JLL’s office in Quarry Bay.

“Kwun Tong, as an emerging commercial hub in Hong Kong, has become an attractive destination for local and international companies seeking convenient, well-connected, and affordable office spaces with considerable appreciation potential,” said Joseph Tsang, chairman of JLL in Hong Kong.

“Given its advantageous location, the property is well-positioned to attract quality tenants, making it a compelling investment opportunity for those seeking stable rental income through long-term investment.”

The 55-year-old building has a 76 per cent occupancy rate and is being rented at an average rate of HK$30 per square foot, according to JLL. The tenants include co-working operator Spaces, which occupies the top two floors, as well as the roof floor.