Hong Kong real-estate investment manager Pamfleet is said to have agreed to acquire a commercial building in Tsim Sha Tsui on behalf of its Pamfleet Fund II for a price approaching HK$600 million (US$77.3 million), reports Mingtiandi.
In the heart of the traditional Kowloon shopping district, the Good Results Building is on Nathan Road. Insiders says the purchase is expected to be finalised in the next few weeks. It would be the fourth acquisition under the $400 million Pamfleet Fund II.
Pamfleet chief Andrew Moore and his team seem to be expecting a retail rebound, says Mingtiandi. The en-bloc purchase would give the fund the chance to refurbish, reposition and remarket the 11-storey building, on the corner of Hillwood Road.
Key to the transaction is the 26,400 sqft (2452 sqm) of retail space in the Good Results Building’s four-storey retail podium. The upper seven floors of the building are for residential use, which the new owners plan to market as co-living space.
Pamfleet Fund II will be buying the circa-1971 asset from its original developer, a Hong Kong family that has owned the property for two generations. Savills Hong Kong has confirmed that it has advised on the transaction.
It seems the building’s new owners are expecting a turnaround in the city’s retail fortunes, says Mingtiandi. Mid-range retail aimed at local consumers has proved more resistant to the retail downturn in Hong Kong than luxury.