Hong Kong's CK Asset to sell office tower for record $5.15 bln
01/11/2017 13:10
HONG KONG, Nov 1 (Reuters) - Li Ka-shing's CK Asset Holdings
Ltd 1113.HK is selling out of a central business district
office tower for HK$40.2 billion ($5.15 billion), marking Hong
Kong's biggest real estate deal.
CK Asset, formerly Cheung Kong Property Holdings Ltd, said
on Wednesday it would sell its 75 percent interest in the
73-storey office tower, The Center, to C.H.M.T. Peaceful
Development Asia Property Limited.
Chinese firms have been aggressively expanding in Hong Kong
property, one of the world's most expensive real estate markets,
buying 29 percent of land sold in 2015 and 2016. urn:newsml:reuters.com:*:nL4N1FG1W9
Several such buyers had expressed a strong interest in
acquiring the CK Asset office tower, although Postal Savings
Bank Of China Co Ltd 1658.HK made clear a year ago that it did
not plan to buy the property. urn:newsml:reuters.com:*:nFWN1DG0GU
CK Asset said in a filing that it expects to record a gain
of about HK$14.5 billion from the sale, with the proceeds to be
used for general working capital purposes.
Shares in the company controlled by the Hong Kong
businessman have risen more than 36 percent this year, outpacing
a 30 percent gain in the broader market .HSI .
The deal follow Mainland developer LVGEM (China) Real Estate
Investment Co Ltd 0095.HK saying in mid-October that it would
buy an office tower from Wharf (Holdings) Ltd 0004.HK for HK$9
billion to strengthen its presence in Hong Kong property.
urn:newsml:reuters.com:*:nL4N1MN094
($1 = 7.8094 Hong Kong dollars)
(Reporting by Donny Kwok and Twinnie Siu; Editing by Alexander
Smith)
((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))
Keywords: CK ASSET DISPOSAL/OFFICE