Laws Group has bought an industrial building in Kowloon East with plans to redevelop it as a landmark commercial complex with retail and office space.

The family-owned conglomerate paid HK$1.39 billion (US$178 million) for the ageing Kwun Tong property. It bought the Maxwell Industrial Building by public tender from the chairman of Maxwell Electronics Group, Yu Chung Kwong, reports the Hong Kong Economic Times.

Next to Ngau Tau Kok MTR station, the building is on a 19,180sqft (1782sqm) site the group hopes to redevelop into 230,160sqft of buildable area. The group is aiming to replicate the model of its D2 Place project in West Kowloon, a former industrial building that was redeveloped into a shopping mall and office venue.

Completed in 1967, the Kowloon East building was bought by Maxwell Electronics Group for its own use in 1983 for $31.25 million. The current $1.36 billion book value of the property, now mainly used for warehousing, represents a 43-fold appreciation.

Real-estate consultancy Savills, which brokered the sale, says the site has the potential to be redeveloped into a property about 100m tall.

Founded as a textile manufacturer by Law Ting-pong in 1975, Laws Group has branched out into fashion retail as well as property investment and development. Its new acquisition reflects CEO Bosco Law’s enthusiasm for turning old industrial properties into trendy commercial spaces.