Triumph heir buys Hong Kong shop in S$2.73m deal after 55-year hold
A ground-floor shop at Arbuthnot House in Hong Kong's central district has changed hands for HK$21.4 million (US$2.73 million), with the buyer linked to the heir of underwear maker Triumph International. The seller, Hip Shing Hong, held the property for 55 years, booking a nearly 22-fold gain.
The ground-floor shop at Arbuthnot House on Arbuthnot Road in Hong Kong's central area changed hands late last month for HK$21.4 million (US$2.73 million), according to local newspaper Sing Tao News. The 137 sq m premises are currently leased to private members' club Salon No. 10.
The seller was Associated Builders Corporation Limited, controlled by family members of the late Henry Fong Yun-wah, chairman of Hong Kong developer Hip Shing Hong. The company bought the shop in 1971 for about HK$940,000, recording a paper profit of HK$20.46 million after 55 years – an increase of nearly 22-fold.
Stanley Poon Chi-ming, managing director of Centaline Commercial, said Hip Shing Hong had owned the property for decades, primarily collecting rental income, and had kept the sale low-profile. "Hip Shing Hong is a long-established local developer; it has primarily focused on rental income and rarely sells properties," he told the South China Morning Post. "However, the company has been restructuring its property portfolio and offloading non-core commercial real estate to reduce its holdings."
Poon said the developer's current strategy involves disposing of scattered, non-core properties to raise cash for future land purchases and development. Land Registry records identify the buyer as Aimba Limited, whose director Oliver Michael Spiesshofer is a descendant of Johann Gottfried Spiesshofer, a co-founder of Swiss-headquartered underwear group Triumph International. Oliver Michael Spiesshofer is also the group's current CEO and managing partner.
Poon called the deal "extremely rare", saying foreign capital has historically played a limited role in purchases of Hong Kong retail properties, particularly street-level shops. "The vast majority of local retail properties are purchased by Hong Kong investors and companies, as locals are more familiar with the market," he said. "Chinese [investors] have a particular fondness for such properties, adhering to the saying that 'a single shop can support three generations.'"
Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management, called the property an "excellent buy", citing its large floor area and location near SoHo and Lan Kwai Fong, in a neighbourhood with strong purchasing power for high-end goods and services. "I believe the transaction price is 20% lower than the market price," Lee said.
