As a senior investor, one of the best known deals of the year by Tang Wenliang, Vice Chairman and Chief Executive Officer of GALE WELL GROUP, must be the sales of whole layer in The Center. He was interviewed by Hong Kong Wen Wei Po recently and exploded, One reason was to save a dental clinic his sister visited, to avoid that dental clinic being forced to move by rent rising after resale, so they simply spent HKD 760 million to buy the whole floor which the dental clinic located in 19th floor of The Center.
■Hong Kong Wen Wei Po (By Yan Lunle)
Photo by Liu Guoquan.
According to data, in this year, Tang spent more than HKD 762 million to buy the whole 19th floor in The Center original hold by Lu Wenduan, a member of the national committee of CPPCC. There were two reasons driving Tang to buy this floor by large amount.
The sq ft price was HKD 31,000; It will be the most worthy to sell it separately.
When accepting the exclusive interview from Hong Kong Wen Wei Po, Tang Wenliang described the scene meeting Lu Wenduan: “ I told him that I am not a speculator, I want to buy it because my sister (Liao Tang Huiai) always visit a dental clinic in that floor.” “She is afraid this dental clinic may be force to move by rising rent after sales. And ask me to buy from Mr. Lu if the company has enough money.” “So I discussed with Mr. Lu.” “Its a reasonable price, good price and very reasonable. He is honest. It must be making money if I resell it.”
He continued, “I talked to Mr. Lu and tell him I am not a speculator and tell him my sister's advice, then he agreed and quote me a price, and one requirement from him is rapid transaction in one month.” Besides keeping the dental clinic, another reason for Tang to buy it is profitable. The sq ft price was only HKD 31,000, which was the lowest since the partial selling started in The Center.
He said, “ We have many layers in COSCO Tower in Sheung Wan, and buyers quote me in sq ft price about HKD 34,000, while The Center is more quality than Far East Finance Centre, so the price difference may up to be 20%.” “It means there is profit when buying in, and sometimes the business is barter.” Tang emphasized, property market has been in down trend this year, so they must purchase quality property, because “expensive is not bad”, so he rapidly purchased this 19th floor in The Center. He pointed, “ I also intend to buy one higher but there were no on sale or in high price.”
It is expected to rent in longterm; The return will be about 2.7%.
Tang expressed, there were no many transactions besides sales in The Center, and most of their properties are being rented not for sales, and this floor in The Center will also be rented out in longterm. Data showed, all floor was rented out in monthly about HKD 1.75 million, with return at about 2.7%. Tang said, “ They will continue the lease to the dental clinic, which is still 5 years.”
Tang Wenliang is a senior Hong Kong property investor, who has held many invested properties, while his family business GALE WELL GROUP owning more properties, many among located in A class commercial building in core area. Liao Tang Huiai, the Chairman of GALE WELL GROUP, is Tang Wenliang’s sister, who has promoted this purchasing in The Center.
Family owns great wealth and holds many properties.
According to data, Mrs Liao is very rich, and she had listed firstly on the 26th among Forbes Hong Kong's 50 richest people by USD 2.7 billion asset(nearly HKD 21.1 billion). This year even rose to 25th by USD 3.4 billion (more than HKD 26.5 billion). Mrs Liao also is the fourth richest woman in Hong Kong.
Her husband is a descendant of Liu Chong Hing. She invested real estate since 1976 and later invested in parking place, who is called “Parking place Queen”, and in 2003 she turned to invest in A class commercial building and commercial shops. Although she is in low-key and rare in accepting media interviews, but her family members are very active. Her daughter Liao Weifen is the founder of coffee chain HABITU, Tang Wenliang is famous real estate commentator, and her son Liao Weilin, the third generation of Liao Baoshan family also a master of property investment.