Morgan Stanley to sell tower for HK$700m

PUBLISHED : Tuesday, 25 November, 2008, 12:00am
UPDATED : Tuesday, 25 November, 2008, 12:00am

Morgan Stanley Real Estate Fund is in the final stages of selling its DBS Building in Central for about HK$700 million, sources said.

They said an investor had submitted an offer of HK$7,717 per square foot for the building.

Morgan Stanley's spokesman yesterday declined to comment.

'Early this year, they would not sell the building if your offer was below HK$1 billion, or HK$11,025 per square foot,' one source said.

Even if the fund sold the property at cost, real estate agents said, it had earned an attractive rental income over the past few years.

In March 2006, the fund teamed up with Pamfleet to buy the building for HK$655 million, or HK$7,221 per square foot, from DBS Bank.

The nine-year-old property, at 139 Queen's Road Central, is a 23-storey office building with a gross floor area of 90,703 sqft. DBS is still a major tenant of the building.

The Morgan Stanley fund began to offload its investment properties in Hong Kong early this year.

It has sold its Kowloon City Plaza for about HK$1.48 billion and appointed a property agency to handle the tender of its five serviced apartments in September.

On the block

An investor has offered to buy the building for HK$7,717 per square foot

The real estate fund had with Pamfleet bought the property in 2006 for, in HK$: $655m