Transactions in industrial sector drop massively by 27% to $5.4b

Here are the biggest deals.

Around 11 major transactions of over HK$30 million were concluded in Q4/2014 for the sales market of Hong Kong's industrial sector.

According to a research note from Savills, although this was a 27% decline from last quarter, the total consideration of HK$5.4 billion was up 74% quarter-on-quarter (QoQ).

The report said this was due to a few big ticket sales, including three billion-dollar deals.

Here's more from Savills:

Investment sentiment in the industrial sector has not been hindered by the recent Occupy protests, with a number of significant deals being done.

The two most eye-catching deals were New World purchasing the revitalised KOHO in Kwun Tong for HK$1.6 billion (around HK$8,000 per sq ft) for longterm investment purposes, and Tai Hung Fai purchasing the Chevalier Engineering Service Centre in Kowloon Bay for HK$1.4 billion (around HK$8,000 per sq ft), eyeing its revitalisation potential.

Besides investment demand, end users were also active in the market, with Hong Kong Sanatorium & Hospital reportedly buying (enbloc) Eastwood Centre in Shau Kei Wan for HK$1.3 billion for use as a medical centre, a listed company purchasing (en bloc) Luen Fat Industrial (No. 2) Building in Kwai Chung for HK$222.8 million, and another end user acquiring a fl oor at Kerry TC Warehouse 1 in the same district for HK$106.8 million, both for owner occupation.