In Hong Kong, a city of property superlatives, add this one: World capital of flipping office floors.
Logistics heir Johnny Cheung Shun-yee made roughly HK$900 million ($115 million) in about nine months by buying and selling two floors of the city’s most expensive office building, based on estimates in local media reports.
Dubbed “Logistics Cheung” by the local tabloids because of his family’s Man Sun Logistics Ltd., the businessman sold the 49th and 50th floors of a 346-meter skyscraper called The Center in August.
He’s far from alone in chasing riches this way. Wealthy individuals and families are slicing and dicing office buildings that would be too expensive to buy outright, giving them access to a market unencumbered by government efforts to slow home-price gains. The value of so-called strata-title office deals in the Chinese enclave reached $3.8 billion in the first half, doubling from a year earlier, according to Real Capital Analytics.
Among the world’s biggest commercial hubs, only New York comes close to boasting similar volumes over the past half-decade.