Shorea Capital Acquires The Pemberton in Sheung Wan in First Hong Kong Living-Sector Deal, Brokered by Colliers

Singapore-based real estate investment manager Shorea Capital has acquired The Pemberton, a 24-storey mixed-use commercial building located at 22–26 Bonham Strand, Sheung Wan, Hong Kong, in a transaction brokered by Colliers. The deal marks Shorea Capital's first investment in Hong Kong's living sector, with the firm planning to seek approval to convert the building into high-quality residential accommodation.

Colliers was appointed lead agent on behalf of receivers and successfully facilitated the transaction through a public tender process. The acquisition reflects a value-add and adaptive-reuse strategy, with Shorea Capital targeting what it describes as a structural supply-demand imbalance in Hong Kong's living market, particularly for professionally managed accommodation assets in prime locations.

Property Overview: The Pemberton

The Pemberton, also known as 柏廷坊, was completed in 1990 and sits on a site of approximately 3,817 square feet, with a gross floor area of approximately 58,000 square feet. The building holds a 999-year leasehold interest — an unusually long tenure in Hong Kong — which removes a significant layer of lease-expiry risk for the incoming owner.

The existing configuration includes retail space from the ground floor through the third floor, with commercial office floors above. Individual floor plates range from approximately 2,300 to 4,400 square feet, offering flexible layouts across the building. The property's exterior features a curtain-wall glass facade.

The Pemberton is situated in the core Sheung Wan commercial district, adjacent to Hong Kong's traditional financial hub in Central. The building is approximately one minute on foot from Sheung Wan MTR station and Queen's Road Central, providing strong transport connectivity. In recent years, Sheung Wan has evolved into a mixed-use urban neighborhood attracting fintech and Web3 companies, alongside an established dining, cultural and lifestyle offering — characteristics that align with the residential living demand Shorea Capital is targeting.

Conversion Plans and Investment Rationale

Shorea Capital intends to apply for planning approval to redevelop the 23 commercial floors into a high-quality living project. The firm has not yet specified a target unit count, accommodation format or project completion timeline, with further details expected to be announced in due course. Market sources have indicated the investor is considering student housing as a potential end use, partly given the building's proximity — approximately two kilometres — to the University of Hong Kong.

The investment thesis centers on a structural shortage of supply in Hong Kong's living sector, particularly for professionally operated accommodation in well-connected, amenity-rich locations on Hong Kong Island. Shorea Capital cited sustained demand growth and limited new supply of institutionally managed living assets as key drivers of the opportunity.

Shorea Capital Chief Executive Officer 張桂南 said the acquisition provides an ideal entry point into the Hong Kong market, which the firm has monitored closely. "The Pemberton combines excellent transport connectivity, a long-term land tenure and clear value-add potential," he said. "We believe an active asset repositioning strategy can further enhance the property's value. Leveraging the property's plans and potential for conversion to a living project, it not only fully realizes its highest and best use, but also addresses the structural demand for quality living products that have long been undersupplied in Hong Kong. We look forward to creating a leading quality living project for the local market."

Shorea Capital brings experience in value-add commercial refurbishments and ESG-oriented asset improvements in the United Kingdom, as well as hotel and commercial redevelopment management in Australia. The firm has also provided strategic advisory services on Asia-Pacific corporate real estate transactions, including privatizations and large portfolio disposals.

Colliers' Role and Market Context

Colliers Hong Kong's Capital Markets and Investment Services team, led by Executive Director and Head of Property Restructuring Services Andrew Ng, acted as lead agent on behalf of the receivers and brokered the transaction. Ng said the sale of The Pemberton reflects sustained investor demand for centrally located assets with repositioning and value-add potential.

"We are delighted to have assisted Shorea Capital in completing its first investment in Hong Kong's living sector, and we believe The Pemberton's active repositioning plan will fully unlock the asset's value while adding quality living supply to the market," Ng said. "This transaction also reflects the market's growing preference for refurbishment and change-of-use strategies to reposition properties into uses that better meet market demand, enhancing long-term asset value and investment returns."

The transaction was conducted following the property's offering through public tender after its previous owner encountered financing difficulties.

Hong Kong Living and Hospitality Market Backdrop

The acquisition comes against a backdrop of improving fundamentals in Hong Kong's hospitality and living sectors. Hotel occupancy and average daily rates increased year over year in the second quarter of 2026, with the luxury segment recording the strongest revenue-per-available-room growth. No new hotel openings were anticipated in Hong Kong during 2026, keeping supply stable while demand continued to recover. Hotel investment transactions in Hong Kong tripled year over year through the first half of 2026, reflecting renewed institutional interest in the city's accommodation assets.

For a conversion project such as The Pemberton, the principal considerations will include the technical and financial feasibility of reconfiguring commercial floor plates for accommodation, upgrading building services, meeting fire and life-safety requirements, and securing the necessary planning and building approvals. The 999-year leasehold tenure is a strategic advantage in this context, eliminating lease-expiry risk over the investment horizon.

Sources

Colliers Hong Kong — Shorea Capital to Acquire The Pemberton in Sheung Wan (September 21, 2026)