REG - Mandarin Oriental Jardine Matheson Hdg - Sale of 301,555 sq.ft. of One Causeway Bay

Jardine Matheson HoldingsAnnouncement

Today 10:30

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RNS Number : 8578D  Mandarin Oriental International Ltd  17 October 2025

17 October 2025

 

The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

MANDARIN ORIENTAL INTERNATIONAL LIMITED

 

MANDARIN ORIENTAL TO SELL 301,555 SQUARE FEET OF ONE CAUSEWAY BAY TO ALIBABA
GROUP AND ANT GROUP FOR US$925 MILLION

 

Overview

 

Mandarin Oriental International Limited ("Mandarin Oriental" or the "Company")
announces today that Alibaba Group and Ant Group (together, the "Purchasers")
have contracted to acquire the top thirteen floors of One Causeway Bay (Levels
21-35) as their headquarters in Hong Kong, as well as the building's rooftop
signage and 50 parking spaces (together the "Property").

 

This commitment is a resounding expression of confidence in Hong Kong's
attractiveness as a global gateway city and the vitality of our local economy,
as well as a clear statement regarding the quality of One Causeway Bay in
particular. One Causeway Bay presents best in class design perfectly located
in the middle of Hong Kong, built to premium standards, with ESG platinum
grading from BEAM Plus, LEED, and WELL.

 

The sale marks a further advancement in Mandarin Oriental's asset-light
strategy and will enable a significant return of capital to shareholders. We
will continue to focus on the rapid growth of the Mandarin Oriental management
business and the strengthening of the brand.

 

Principal Terms

 

Under Preliminary Agreements for Sale and Purchase (dated today's date), One
Causeway Bay Limited, a wholly owned subsidiary of Mandarin Oriental, has
agreed to the strata title sale of the Property to the Purchasers (the
"Transaction") for US$925 million.

 

Completion of the Transaction remains subject to:

(i)       approval from the National Development and Reform Commission (the
"NDRC Approval Condition");

(ii)   the Company and the Purchasers entering into a Deed of Mutual Covenant
in accordance with agreedcriteria in relation to the management of the
Property (the "DMC Condition"); and

(iii)      other conditions customary for a transaction of this nature.
 

 

Subject to satisfaction of the conditions, completion of the Transaction is
expected to occur on 31 December 2025, with the sale proceeds expected to be
received on the same day. Mandarin Oriental will provide the Purchasers with a
fixed sum of US$37 million towards planned enhancements to the Property.

 

Valuation Analysis and Financial Impact

 

Total purchase price: US$925 million

 

Total floor area: 301,555 square feet

 

The purchase price of the Property reflects the carrying value of the Property
by Mandarin Oriental as of 30 June 2025. The carrying value was based on a
market valuation of the Property prepared by an independent valuation firm.
The Property represents 36% of the total value of Mandarin Oriental's tangible
fixed assets and investment properties, using the carrying value as at 30 June
2025. The remaining office and retail space of One Causeway Bay, amounting to
286,984 and 82,550 square feet respectively, remain owned by Mandarin
Oriental.

 

Use of Proceeds

 

The Company will repay borrowings of US$96m drawn for construction of the
Property and will retain up to 3% of the gross proceeds to fund the remaining
construction cost of One Causeway Bay. The Company will provide the Purchasers
with a fixed sum of US$37 million towards planned enhancements to the
Property.

 

The remaining proceeds, after selling expenses, are expected to amount to
approximately US$758m and will be distributed to shareholders via a special
dividend. Details regarding the special dividend, including the amount per
share, record date and payment date, will be announced in due course.

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Kieren Barry, Group Counsel.

 

 

- end -

 

 

For further information, please contact:

 

Mandarin Oriental International Limited

 

Max Fleming
 
  maxfleming@mohg.com

Director of Corporate Finance, Hong
Kong
(852) 2895 9171

 

Chris Orlikowski
 
 corlikowski@mohg.com (mailto:corlikowski@mohg.com)

Director of Global Communications, London
                     (44) 791 7280 210

 

This and other Group announcements can be accessed online at
'www.mandarinoriental.com'.

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