Bridgeway Prime Shop Fund Management, which invests in wholesale and factory plenty in Hong Kong, has suffered a strike of about 30 per share in three deals over the past two months as geopolitical tensions and reduced bets on price cuts hurt prices and market attitude.
The bank sold a ground-level factory at Tung Lee Mansion in Sai Ying Pun for HK$ 15. 6 million ( US$ 2 million ) last week, founder Edwin Lee told the Post on Thursday. It purchased the property for HK$ 24. 5 million three years ago, according to Land Registry files.
Earlier this month, it sold a ground-level factory at One Eighty in Shau Kei Wan for HK$ 20. 1 million, versus its ordinary acquisition cost of HK$ 25 million in July 2023. Next month, Bridgeway divested a ground-level store at 126-128 Woosung Street in Kowloon for HK$ 18. 7 million, after paying HK$ 27. 5 million for it three years ago.
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Nevertheless, the bank suffered a HK$ 22. 6 million funds lost from the three disposals.
“We will keep offloading our assets to cash out around HK$ 300 million, ” Lee said. The bank is boosting its cash to invest in other assets with great potential amid the business anxiety, Lee added.
The capital market would definitely be impacted by the US-China trade war as investment confidence weakens, he said, reiterating his view during an interview last month.
US President Donald Trump has imposed cumulative tariffs of 145 per cent on Chinese goods over several rounds since early this month. China, which raised its tariff on US goods to 125 per cent, now faces up to a 245 per cent levy as a result of its retaliatory actions, the White House said on Tuesday.
Hong Kong ’s economy is bracing for a slowdown, as the external environment is clouded by uncertainties, including escalating geopolitical tensions disrupting global trade and weaker investment appetite as a result of potentially slower global rate cuts, according to property consultancy CBRE.
Hong Kong ’s retail property market has been suffering because of slowing retail sales and a poor rental outlook. Leasing momentum was weak last quarter as retailers continued to wait for stronger recovery signs as Hong Kong ’s retail sales tumbled in January and February, despite an increase in tourist arrivals, CBRE said.
Vacancy rates, however, were stable across all core districts, standing at 6. 3 per cent in Central, 5. 3 per cent in Causeway Bay, 14. 3 per cent in Tsim Sha Tsui and 6. 9 per cent in Mong Kok. The overall vacancy rate remained at 7. 8 per cent.
CBRE said rents for high-street shops rose at an annual pace of 1 per cent last quarter.
Futu Securities scooped up a street-level shop on Russell Street earlier this month, according to market sources. The Chinese brokerage could be paying HK$1.2 million a month to occupy the lot in Soundwill Plaza, according to some property agents. The space was vacated by the operator of Transformers: The Ark restaurant in February.
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