A Dozen Office Floors In Hong Kong Sold for HK$4.5bil
HONG KONG – Swire Group has divested twelve levels at One Island East, a Grade A office building in Quarry Bay with a height of 67 storeys, for a total of HK$4.5 billion (around S$926 million) in a deal brokered by property consultancy Jones Lang LaSalle (JLL), reported The Edge on Tuesday late afternoon (21 November, SGT).
A filing with the local bourse by Swire Properties and its parent firm Swire Pacific named the buyer as Hong Kong’s Securities and Futures Commission (SFC).
In particular, the office transaction covered levels 42 to 48 as well as levels 50 to 54. At present, the SFC already occupies levels 45 to 54, except for level 49. Upon completion of the acquisition, the Commission’s current tenancy agreement in the commercial property will be terminated.
Notably, SFC will conclude the purchase of 9 office floors it already occupies by December 2023, while the acquisition of the remaining three office levels will be completed by 2028.
Commenting on the office deal, JLL said the purchase of a dozen office floors in One Island East marks the biggest end-use office transaction in Hong Kong since 2019.
“Hong Kong’s office market is one of the most resilient asset classes globally, with strong and sustained demand in both the leasing and investment markets. We will see the demand improve further following stabilising global and mainland China’s economies,” remarked JLL Hong Kong’s Managing Director & Head of office leasing advisory, Alex Barne.
Meanwhile, JLL Hong Kong’s Head of capital markets Oscar Chan said the demand for Hong Kong commercial real estate, including office properties, have been hit hard by the interest rate hikes.
“However, given that the demand dynamics, defensive nature and limited office supply in core business districts on Hong Kong Island, high-quality offices will continue to attract the interest from both end-users and investors,” he added.