Chow Tai Fook turns from tenant to owner with US$51 million Hong Kong school property deal
Cheng family entities acquire DSC International School site, with the purchase a bet on demand for international schools in city: analysts
The deal – nearly doubling the property’s valuation from an internal transfer in late 2023 at HK$213 million – marks a change from leasing to owner-occupation as the campus is home to DSC International School, which is operated by CTF Education Group, an education arm linked to Chow Tai Fook interests.
The premises at 5-7 Tai Fung Avenue comprise the ground floor to the fourth floor of Kam Shan Mansion on Kao Shan Terrace. The property covers about 146,000 sq ft with about 80 classrooms, sports grounds and other school facilities.
“The biggest incentive for schools to buy instead of rent is stability,” said Oscar Chan, head of capital markets at JLL in Hong Kong. “If a lease expires and the school has to relocate, it is disruptive for students and parents.”
The acquisition comes as demand for international school places and student accommodation gains momentum amid government efforts to attract skilled migrants and overseas students through various talent admission schemes.
“With reasonable prices, end users are now willing to buy suitable premises as they are confident in the long-term outlook for Hong Kong’s international school sector,” Chan said.
The transaction was structured as a company share transfer. According to Land Registry and Companies Registry filings, Keen Elite Group, the company holding the property, changed its directors on April 15.