Central retail shop bought by Swiss heir in ‘rare’ Hong Kong market move

In a rare acquisition, a long-standing developer in Hong Kong sold a Central retail shop that had been in its possession for over half a century to the heir of Swiss underwear brand Triumph, according to Land Registry records. The one-and-a-half storey shop at Arbuthnot House, 10-12 Arbuthnot Road, Central, measured approximately 1,474 square feet and sold for HK$21.4 million, a price of HK$14,518 per square foot.

The transaction, which occurred late last month, saw the shop previously leased to the private club Salon No. 10. Associated Builders Corporation Limited, the original owner, acquired the property in 1971 for about HK$940,000 and held onto it for 55 years before realizing a paper profit of HK$20.46 million.

Stanley Poon Chi-ming, managing director at Centaline Commercial, noted that Hip Shing Hong, the previous owner, primarily focused on rental income and had held the property for rental purposes, keeping a low profile regarding its sale. He explained that Hip Shing Hong was restructuring its property portfolio and offloading non-core commercial real estate to reduce its holdings. Poon highlighted that the transaction involved international capital in acquiring local retail assets, a move that is uncommon in Hong Kong.

The new owner of the retail shop is Aimba Limited, a company whose director is Oliver Michael Spiesshofer, a descendant of Johann Gottfried Spiesshofer, one of the founders of Triumph International. Poon emphasized that this transaction was "extremely rare," as foreign capital is typically not used to purchase retail properties, especially street shops, in Hong Kong. He noted that local investors and companies are more familiar with the market, and Chinese investors often have a strong preference for such properties.

Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management, viewed the property as an "excellent buy," noting its large floor area and prime location near SoHo and Lan Kwai Fong, where high-end consumption is strong. He added that the shop's high-quality fit-outs and current tenant, a private members' club, made it a desirable asset.

Lee suggested that achieving a 4% yield would require a monthly rent of HK$70,000 to HK$80,000, a rate he believed was achievable given the property's location and tenant. He also suggested that the transaction price was around 20% lower than the market price.