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Naming rights lure for firms seeking Wan Chai flagship

CNT Group is selling part of its joint-venture grade-B office development in Wan Chai with naming rights to lure companies wishing to have a flagship building in Hong Kong.

The company sold two of seven floors in the first phase of Morrison Plaza, on Morrison Hill Road, two weeks ago. It is also selling 20 car-parking spaces at $1.2 million each.

Graham Wong, commercial department director of Treasure Land Property Consultants, the project's sole agent, said the developer was selling the naming right for about $10 million.

Prospective buyers must buy at least three floors to be entitled to the naming right, he said.

CNT group and its partner bought the 36-floor office development from Great Eagle Holdings for $736 million in December.

The sale and purchase was delayed for six months after the purchaser requested twice last year to extend the completion date.

Floors 21 to 28 were released for sale, with the 26th floor selling for $25.52 million and the 27th for $25.87.

The selling price represented about $7,400 per sq ft for the 26th floor and $7,500 per sq ft for the 27th. Each floor, measuring 3,496 sq ft except the 21st floor, is divided into three office units ranging in size from 879-1,326 sq ft.

The price for an entire floor is between $24.82 million and $26.56 million, while unit prices range from $6.24 million to $9.41 million.

Jerry Wong Kai-hung, assistant sales manager of Midland Realty said the price was in line with the secondary market price as transaction prices in the nearby buildings were at $7,100-$8,000 per sq ft.

Morrison Plaza, about 10 to 15 minutes walk from the Wan Chai MTR station, is not as prime a site as the CNT Centre and Emperor Commercial Building along Hennessy Road.

Transaction prices of CNT Centre, a nearby commercial building, were $7,100-$7,200 per sq ft, while units in Emperor Commercial Building sold at an average cost of $8,000 per sq ft.

'The sale of the building's naming right certainly will attract many companies, especially mainland firms who would like to set up a flagship building,' Midland's Mr Wong said.

The grade-B office project also would attract medium-sized trading or accountancy companies.

He said banks' recent conservative lending policies also might affect buying interest.

Mr Wong of Treasure Land said the developer had lined up three banks to provide a mortgage of up to 70 per cent at an interest rate as low as 9.25 per cent.

He said negotiations with a mainland company to purchase about three floors with the naming rights were under way. Most mainland companies had set up headquarters or window companies in Wan Chai where prices were lower than Admiralty and Central.

In June, Xinhua (the New China News Agency) bought 15 office floors of Pearl Oriental Centre in Wan Chai for $1.7 billion or $13,333 per sq ft. Xinhua then renamed the Wan Chai office block as the News Building.

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