Three Exchange Square Office Tower

Hongkong Land Says It’s Not Selling Three Exchange Square Office Tower

HONG KONG – Hongkong Land, a commercial property landlord and real estate developer, has refuted a news report that it plans to divest a famed Hong Kong office building, reported Reuters on Wednesday morning (9 August, SGT).

The company insisted that it has no intentions to unload any of its commercial properties in Central, the commercial heart of Hong Kong.

Earlier on Wednesday, Sing Tao Daily reported that market sources claimed that Hongkong Land is looking to dispose 33-storey Three Exchange Square and the office landlord’s asking price is around HK$16 billion (US$2.05 billion).

“The market rumour is pure speculation. Hongkong Land has no plan to sell any of the buildings in Central,” clarified a representative from Hongkong Land.

Meanwhile, a Bloomberg report updated on Wednesday afternoon revealed that WeWork warned the US Securities and Exchange Commission (SEC) that the coworking space operator is concerned whether it can continue operating.

“Substantial doubt exists about the company’s ability to continue as a going concern” due to cash needs, financial losses, and a fall in memberships, stated WeWork in a filing with the SEC on Tuesday.

The fate of the New York-based coworking space operator depends on the “successful execution of management’s plan to improve the company’s liquidity and profitability”.

WeWork’s plan for 2023 includes restructuring, negotiating more advantageous terms on office leases, increasing membership, and potentially even issue debt or divest assets, it added in the filing.

Furthermore, the coworking space operator told regulators that it bled billions of dollars in H1 2023 after macroeconomic conditions negatively impacted demand for its flexible workspaces, with clients cancelling their memberships en mass.

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