Hermes to receive HK$900 million from selling its space
In this article (5)
British property developer Chelsfield has bought the ground floor of The Galleria shopping centre in Central from French luxury brand Hermes for HK$900 million (US$115 million).
Comprising four retail shop units and a basement, the floor has a combined area of 7100sqft (660sqm).
Hermes makes a profit of $710 million through the sale of its former flagship space, after buying up the component units in succession since 2000 for a total of $190 million.
After deciding in 2016 to relocate its flagship to Prince’s Building, just a five-minute walk away, Hermes put the floor on the market.
For Chelsfield, the deal is its second acquisition of a commercial property in Hong Kong within a month. It partnered with Hong Kong real-estate investment firm Pamfleet to buy a shopping centre in North Point last month for $2 billion from Fortune Reit.
Chelsfield expanded to Asia in 2016, when it took over the real-estate division of the Dymon Asia Group. The Asia arm of the UK firm is now run by Dymon’s former management team led by former Grosvenor executive Nick Loup, who joined Chelsfield in 2015 as part of the takeover.
Questions & Answers
Q.What is the total area of the space Hermes sold in The Galleria shopping centre?
What is the total area of the space Hermes sold in The Galleria shopping centre?
Hermes sold its ground floor space in The Galleria, which comprises four retail units and a basement. The combined area of this property is 7100 square feet, or 660 square metres.
Q.How much profit did Hermes make from selling its former flagship location?
How much profit did Hermes make from selling its former flagship location?
Hermes made a profit of HK$710 million from the sale of its former flagship space. The company had acquired the component units over time for a total of HK$190 million.
Q.When did Chelsfield expand its operations into the Asian market?
When did Chelsfield expand its operations into the Asian market?
Chelsfield expanded into Asia in 2016 when it acquired the real-estate division of the Dymon Asia Group. The UK firm's Asian operations are now managed by Dymon's former leadership team.
Q.What other property acquisition did Chelsfield make in Hong Kong recently?
What other property acquisition did Chelsfield make in Hong Kong recently?
Within a month of the Hermes deal, Chelsfield also bought a shopping centre in North Point. This acquisition, made with Pamfleet, was valued at HK$2 billion and purchased from Fortune Reit.
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