Hongkong Land

HK Land Quarry Bay tower for sale again

PUBLISHED : Wednesday, 14 June, 2006, 12:00am
UPDATED : Wednesday, 14 June, 2006, 12:00am


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Hongkong Land Holdings is to put its grade A office building at 1063 King's Road, Quarry Bay, for sale through tender - its third attempt to dispose of the property since last year.

Surveyors said given that supply of grade A office space was limited, the building would be welcomed by investment funds.

The building, providing a gross floor area of 294,000 square feet, is expected to be sold at $1.6 billion or $5,442 per square foot.

It was put back on the market after a deal with Australian investment fund Allco could not be reached. The fund reached a preliminary agreement with Hongkong Land in March.

Last year, British Capital and Income Trust also agreed to buy the building but the deal was not sealed, sources said.

Hongkong Land commercial property executive director Raymond Chow declined to comment.

Property agents said the building's average rent was more than $20 per square foot in terms of net usable office space. The occupancy rate is more than 90 per cent.

The 30-storey building, Hongkong Land's first office block for lease outside Central, was built in 1999.

Property agents said interest in the building was high but Hongkong Land was in no rush to dispose of its properties given its financial strength. Investors would need to make an aggressive offer to secure the building, they said.

The building is on the site of the former Crown Motors Building. Hongkong Land bought the site for about $815 million from Pacific Century Group and spent $1.5 billion on its redevelopment.

The last office transaction in Quarry Bay was for PCCW Tower in late 2004. The regional property investment arm of Prudential Financial bought it for $2.8 billion or $4,529 per square foot.