Shop King family sell another building in Sai Kung HK$123 million, a 53% drop in value

The family of the late Tang Shing-bor, known as the “Shop King,” acquired numerous industrial buildings in Sai Kung over the past ten years, hoping to develop large-scale projects – as reported many times by BUZZ. However, with the market downturn, five interconnected industrial buildings acquired by the Tang family became prime real estate for bankers, with the latest sale of another building at a 50% discount. The transaction involved the entire building at No. 2 Hong Ting Road, Sai Kung, for HK$123 million. Although this was about 14% higher than the banker’s asking price of HK$108 million in August, it was still a significant depreciation of about 53% compared to the purchase price in 2018. It is expected to be purchased by local users for warehousing purposes.

BUZZ has covered the transactions around that part of Sai Kung for the past decade. The latest transaction involves the entire No. 2 Hong Ting Road building, a four-storey low-density industrial and warehouse building with a site area of ​​approximately 18,094 square feet and a total floor area of ​​approximately 59,991 square feet.

The Tang Shing-bor family purchased the industrial building at the site for HK$260 million in 2018. After holding the property for about eight years, it has changed hands, resulting in a significant loss of HK$137 million, or about 53% depreciation.

Between 2016 and 2018, the Shop King family spent over HK$1.4 billion to acquire five connected old industrial buildings on Hong Ting Road (including Nos. 1, 2, 6, 7 and 9) from multiple owners, representing a rare large-scale land consolidation project in Sai Kung.

However, the market situation subsequently reversed for the family, and their entire real estate development plan was severely impacted. Many of their properties became mortgaged properties, and the aforementioned five connected old buildings in Sai Kung were eventually taken over by the receiver and put on the market.

Last month BUZZ reported that the entire industrial building at No. 6 Hong Ting Road, Sai Kung, was purchased by the Hong Kong University of Science and Technology for HK$141 million. The Tang family held the property for nine years, incurring a loss of HK$224 million, representing a drop of over 60% in value during that period.