Macau Casino Pioneer's Family Invests $71 Million in Hong Kong Apartment Building

The family of the late Macau casino pioneer Fu Tak-iam has acquired a serviced-apartment building in Hong Kong for approximately $71 million (HKD550 million). The purchase of CHI 138, a 107-unit complex located in Wan Chai, marks a significant real estate investment by the descendants of the former gaming magnate.

Key Takeaways

• The Fu family, through a connected company, purchased the CHI 138 serviced-apartment building for $71 million.
• The building features 107 units, ranging from studios to three-bedrooms.
• This investment reflects the family's continued focus on Hong Kong real estate, a sector they reinvested in after leaving the casino business.

The Acquisition Details

A company named Pleasure Properties, with four members of the Fu family listed as directors, finalized the purchase of CHI 138 on November 11. The property, situated at 136 Johnston Road and 2 Stone Nullah Lane, comprises 107 serviced apartments. These units vary in size from 27 to 223 square meters, offering studio to three-bedroom configurations. Monthly rental rates for these apartments range from HKD23,000 to HKD150,000.

Legacy and Real Estate Reinvestment

Fu Tak-iam, also known as Fu Lo-yung, was instrumental in Macau's gaming industry, holding a monopoly for over two decades before Stanley Ho took over the concession. Following Fu's death in 1960, his descendants transitioned away from the casino business and began reinvesting their wealth into Hong Kong's real estate market. Notably, Fu's eldest son was responsible for establishing the Furama Hotel, which was later redeveloped into the prominent AIA Central office tower.

Hong Kong Property Market Outlook

Property consultants like Cushman & Wakefield highlight hotels and serviced apartments as attractive investments due to their consistent rental income. Tom Ko, an executive director at Cushman & Wakefield, noted that rental housing and hotel assets have captured significant investment attention, accounting for 24% of total investment as of December 8, a notable increase from their usual share of less than 10%.

Recent reports from JLL indicate that Hong Kong's property market is showing signs of recovery after a six-year downturn, with the office leasing and housing sectors leading the resurgence in the fourth quarter. JLL anticipates a rise of approximately 5% in capital values for the mass residential segment, while luxury residential values are expected to remain stable. Luxury rents are projected to see an increase of 0-5%.

Sources

• Family of late Macau casino tycoon Fu Tak-iam spends $71M to acquire Hong Kong apartment building, VnExpress International.