Hong Kong Office Moves for $700M

HONG KONG—CBRE said Thursday that it its participating in the the single largest office tower purchase in the Hong Kong office market, following the agreement for the sale and purchase of the East Tower at One Bay East, in Kowloon East. 

A landmark transaction for the Hong Kong office market, the acquisition will see Citi purchase from Wheelock Properties Ltd., a new 21-story, class A office building comprising 512,000 square feet, together with 2 levels of basement car parking. The deal is valued at $700 million (HK$5.425B).

The team of CBRE real estate advisors who worked on the acquisition was led by Rhodri James, executive director, office services, Hong Kong, CBRE. James commented on the magnitude of this purchase for the Hong Kong market: 

“This deal represents another example of a large capital investment by a leading financial services company, who by purchasing an office building for self-use, will increase their ability to strategically plan their space requirements for the long-term as well as manage costs.”

This purchase is a major commitment by Citi, not only to the Hong Kong property market, but also to Kowloon East, and emphasizes the growing significance of Hong Kong's second Central Business District .

“Citi has made a major commitment to Kowloon East,” said James. “With Wheelock's continued investment in the area, Kowloon East is evolving and is now a serious consideration for many major companies. This transaction by Citi to purchase the East Tower of One Bay East follows Manulife Financial's acquisition of the West Tower at the same development. We hope that the Hong Kong Government takes note of both companies' undertaking in Kowloon East and takes further steps forward to cement plans for the evolution of CBD2.”

Wade Cruickshanks, managing director, APAC Region Head of Citi Realty Services, commented on Citi's commitment to Kowloon East:

"Citi has enjoyed 112 years of success in Hong Kong and it is our determination to continue to grow our business in Hong Kong,” Cruickshanks said. “The purchase of the East Tower of One Bay East reinforces this commitment and is a testament of our belief in the Hong Kong Government's vision for the future office market in Kowloon East, which we are confident will become a sought after location for MNC's." 

Ricky Wong, managing director of Wheelock Properties Limited, said: “We are delighted that Citi has chosen One Bay East as the strategic base for their business operation.  Wheelock Properties has a proven track record in Grade-A office development and we are committed in delivering high quality property to meet the high and stringent office requirements of multinational companies.”