SJM buys Hengqin office for RMB724 million, eyes hotel conversion

SJM Holdings Limited announced yesterday its plan to acquire a 12-story office building in the Hengqin area from Shun Tak Property Development Company Limited for over RMB724 million, with intentions to renovate the property into a three-star hotel featuring no more than 250 guest rooms.

According to a statement from SJM, the project is part of certain office properties at Xin De Kou An Shang Wu Zhong Xin, situated north of the Hengqin Port facility, and is currently in a shell state, generating no rental income since its establishment.

The property comprises 12 floors of office units and one retail unit, totaling approximately 19,781 square meters of gross floor area.

SJM aims to complete the renovation and fit-out works in approximately 24 months to enhance revenue opportunities for tourism and hotel operations in the Guangdong-Hong Kong-Macau Greater Bay Area.

“The implementation of the multiple-entry permits policy for mainland tour groups traveling to Hengqin and Macau, alongside the ‘one visa, multiple entries’ policy for travel to Macau under the Guangdong-Macau In-depth Cooperation Zone in Hengqin, is expected to boost demand for hotels in Hengqin significantly,” stated SJM.

It believes that “the project’s location adjacent to the Hengqin Port facility offers a strategic advantage, creating synergies with existing businesses,” adding that the project “is anticipated to attract new customer segments, diversify the product portfolio, expand market reach, increase revenue streams, and serve as a gateway to the mainland market.”