Media365
A Hong Kong nursing home has spent HK$112.8 million (US$14.4 million) to buy the building it leases, underscoring the growing role of end users in large commercial property deals as uncertainty over future rents keeps many investors on the sidelines.
Evergreen Nursing House (No 2) Limited – the registered license holder and operating organisation for Evergreen Nursing House No 8 – has purchased the Kowloon property it has occupied for years on January 22, according to Land Registry records.
The transaction highlights how occupiers with stable cash flows are committing capital even as commercial property values remain under pressure.
The seller, Well Crown Properties, bought the Ma Tau Wai Road site in 2010 for about HK$115 million, meaning the asset changed hands at a discount of roughly 2 per cent after more than a decade of ownership.
The property comprises the ground-floor shop and the first to third floors of Fu Hang Court at 104-112 Ma Tau Wai Road, along with an entrance hall, internal staircases, lift access and plant rooms.
Certain areas – including the lift machine room and a separate ground-floor shop now operating as a money exchange – are excluded from the lease.
