>

>

Wheelock enters into record breaking deal to sell Hong Kong building for $1.6 bil

By Frederik Balfour

/ Bloomberg |

October 16, 2017 10:31 AM SGT

Join our Telegram channel and follow our Facebook for the latest update.

(Oct 12): Mainland Chinese company LVGEM (China) Real Estate Investment will purchase a building from Wheelock & Co. for HK$9 billion ($1.56 billion), setting a record price per square foot for a commercial building in Hong Kong’s Kwun Tong area.

A sum of HK$788 million has already been paid for the purchase, which is slated for completion by Dec 29, according to a Wheelock statement to the Hong Kong Stock Exchange on Wednesday. A HK$4.6 billion payment will be made at the time, with the balance due in instalments to Wheelock subsidiary Wharf (Holdings), the company said.

It is the second-most expensive real estate deal in Asia this year, after CapitaLand Commercial Trust, Singapore’s biggest office landlord, agreed to buy BlackRock’s Asia Square Tower 2 for $2.1 billion in September, according to Sigrid Zialcita, managing director of research for Asia Pacific at Cushman & Wakefield.

The deal by LVGEM is the latest case of mainland buyers purchasing entire buildings in Hong Kong. Known as 8 Bay East, the building enjoys a harbour-front view and is adjacent to properties bought from Wheelock by Citigroup Inc. in 2014 for HK$5.4 billion, and Manulife Financial Corp. for HK$4.5 billion in 2013.

The sale works out to be about US$1,900 ($2,576) per square foot, unprecedented for the district, according to Dorothy Chow, regional director at Jones Lang LaSalle.

“This is a good price for the seller,” said Chow, who works in valuation services in Hong Kong. “This transaction is a historical high in that area.”

Wharf shares were up 2.9% at the midday break in Hong Kong, the biggest intraday increase since Sept 5, and Wheelock shares gained 0.2%.

The article, written by Frederik Balfour, first appeared on Bloomberg.

Tags:

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Sapphire Windows’ Liews: Beyond providing a room with a view

2

Keeping cool in an east-west-facing house with modern glass windows

3

Far East Shopping Centre’s $908 mil en bloc deal aborted

4

Luxury living in the new heart of Bukit Timah

5

Grandson of Genting Group founder leads Cover Projects, carves niche in Singapore’s heritage properties

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00