One of Hong Kong's richest families has made a substantial investment in Sun Hung Kai Properties' recently acquired plot of land in a prime location within the city. The Kwok family reportedly invested $1.2 billion to acquire a 25 percent stake in the planned project that will see the establishment of new office towers in Sun Hung Kai's newly bought property.
The Kwok family is one of Sun Hung Kai's controlling shareholders. The family's substantial investment has been seen by some as a clear vote of confidence in the city's economy, despite having entered into a the technical recession during the third quarter of this year.
As part of their deal with Sun Hung Kai, the Kwok family will share the benefits of ownership, development, and operation of the office towers that will be erected on Sun Hung Kai's recently purchased property.
Last month, Sun Hung Kai Properties managed to win a bid for a plot of land located on Austin Road atop the city's West Kowloon High-Speed Rail Station. The city's largest developer by market value set a new record in Hong Kong when it paid HK$42.23 billion for the commercial property.
Sun Hung Kai announced on Monday that the Kwok family's investment in its project exhibited confidence in the city's prospects in the coming years. The company's chairman, Raymond Kwok Ping-Luen, stated that Sun Hung Kai expects to have more long-term investors in its landmark project apart from those who have already expressed their interest.
Some Analysts, unfortunately, do not share Kwok's confidence in the city's prospects. The same analysts have stated that the leasing sentiment in Kowloon and other districts remain to be very weak given the looming uncertainties brought about by the ongoing trade dispute between China and the United States and the prolonged domestic unrest.
Following its acquisition of the property last month, Sun Hung Kai revealed plans to erect new towers that will include both retail and office spaces. The company also stated that the development will essentially form a synergy with its neighboring establishment the International Commerce Center, which Sun Hung Kai also runs and operates.
The lot that was purchased by the company is roughly the size of 47 Olympic swimming pools and can accommodate a tower with 3.17 million square foot of gross floor space. The proposed tower that will be erected on the lot will reportedly be 12 percent larger than the International Commerce Center, which is currently the Kowloon district's tallest skyscraper.
