Is Swire Selling Its Stakes of Two Commercial Buildings In Hong Kong For HK$14 Billion

Is Swire Selling Its Stakes of Two Commercial Buildings In Hong Kong For HK$14 Billion?

HONG KONG – Recent reports have revealed that Swire Properties is currently in talks to sell two of its major stakes in two commercial buildings simultaneously. The stakes are being sold to Hengli Investments Holdings Group, sources have revealed. It is also being said that the company might be selling the stakes for HK $14 billion.

If Swire does go through this deal, it will become one of the latest spates of deals in one of the priciest markets in the world. Sources who are close to the matter have said that Hengli is currently in discussions with the banks to finance the massive purchase. If the news is true, then Swire will be selling the stakes of the very infamous Cityplaza Three and Cityplaza Four, both of which are located in Hong Kong.

While the sources have spoken about the news, the names of the sources have not been revealed due to privacy concerns.

What we do know about this latest news is that Swire has been in the news time and again for things similar to selling stakes in plazas. Moreover, the company, which it is selling its stakes to, is a Hong Kong-based property investment firm, which has its direct linkages to Chen Chang Wei. Chen is also the director of the company.

The current position of the Hong Kong commercial real estate market remains on a brink and a tear after it was revealed that some record-breaking purchases have shaken the market. These purchases were initiated by domestic and Mainland Chinese investors based in Hong Kong.

Previously, two main Chinese property developers based in Hong Kong and those who also happen to be billionaires, agreed to join hands to buy The Center from the renowned Li Ka-Shing company. The deal was set to go through for a whopping HK $40.2 billion.

Last year, Henderson Land Development also agreed to pay a whopping HK $23.3 billion for the first ever-commercial land that was to be sold by the government of Hong Kong in the Central District. This was the first time the government was selling since 1996.

As far as Swire is concerned, the two towers that are being sold offer a mix of retail and office space. They are located in Taikoo Shing, Hong Kong Island.

While many sources have confirmed the news of Swire selling stakes in two major Hong Kong towers, a person who answered the call for Hengli Investments said that she does not have any information on the matter and would also not transfer calls. Therefore, the news is yet to be confirmed officially. On the other hand, a spokesperson for Swire also denied commenting.

Since May 10, when this first sale was initially flagged, Swire’s shares have increased by 7.5%. On the other hand, one cannot doubt the legitimacy of Hengli to make such immense purchases as last year, the company emerged as the primary buyer of the City of London headquarters of Lloyds Banking Group.

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