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PTU sold four properties in three months, cashing in HK$428 million
Hong Kong's once largest teachers' union has sold its property in Wing Tak Mansion in Causeway Bay for HK$160 million last month, marking the fourth of its properties being sold in three months following its disbandment.
Hong Kong Professional Teachers' Union sold the Causeway Bay property of about 10,000 square feet at nearly 20 percent lower than the market price.
The union has quickly sold off its interests - shops and units - after its announcement to disband on August 10 this year.
Education Bureau refused to recognize the body after Chinese state media Xinhua and People’s Daily slammed it as a “poisonous tumor” that must be eradicated.
Over nearly half a century, the largest single-industry trade union in the city owned at least six properties.
It has sold four properties since the official disbandment in September for a total of HK$428 million.
Among the most valuable of PTU's properties are the loft plus the two ground floor shops in Wing Tak Mansion, Causeway Bay.
They were purchased in the 90s for HK$22.98 million and earned a paper gain of HK$137 million after the transaction.
Source said that PTU asked for HK$280 million at first, but it has been reduced to HK$160 million, a drop of nearly 40 percent.
Dennis Cheng Tak-ming, senior sales director of Ricacorp Properties, said that the price was nearly 20 percent lower than the market level.
He said that the large premise can house restaurants or chain stores, such as those selling dried ginseng and seafood.
"The expected rent per square foot was HK$50 to HK$60, meaning the new buyer would be able to enjoy an annual return of nearly 4 percent," he said.
It was said that the disbandment of the union was on track.
The union had announced earlier on its website that it has appointed an accounting firm to assist in the disbandment. It said that a general meeting would not be held at this moment but would write to its members to explain the progress of disbandment.
Apart from selling its properties, it has yet to complete a series of procedures whose duration is difficult to predict, sources said.
The union has quickly sold off its interests - shops and units - after its announcement to disband on August 10 this year.
Education Bureau refused to recognize the body after Chinese state media Xinhua and People’s Daily slammed it as a “poisonous tumor” that must be eradicated.
Over nearly half a century, the largest single-industry trade union in the city owned at least six properties.
It has sold four properties since the official disbandment in September for a total of HK$428 million.
Among the most valuable of PTU's properties are the loft plus the two ground floor shops in Wing Tak Mansion, Causeway Bay.
They were purchased in the 90s for HK$22.98 million and earned a paper gain of HK$137 million after the transaction.
Source said that PTU asked for HK$280 million at first, but it has been reduced to HK$160 million, a drop of nearly 40 percent.
Dennis Cheng Tak-ming, senior sales director of Ricacorp Properties, said that the price was nearly 20 percent lower than the market level.
He said that the large premise can house restaurants or chain stores, such as those selling dried ginseng and seafood.
"The expected rent per square foot was HK$50 to HK$60, meaning the new buyer would be able to enjoy an annual return of nearly 4 percent," he said.
It was said that the disbandment of the union was on track.
The union had announced earlier on its website that it has appointed an accounting firm to assist in the disbandment. It said that a general meeting would not be held at this moment but would write to its members to explain the progress of disbandment.
Apart from selling its properties, it has yet to complete a series of procedures whose duration is difficult to predict, sources said.
