Murray Building, set to be hotel, sells for more-than-expected HK$4.4 billion
Wheelock Group pays HK$4.4 billion forformer government building in Central which will be converted into aluxury hotel
The 44-year-old Murray Building in Central, the former headquarters of various government departments, was sold for HK$4.4 billion yesterday, 35 per cent higher than market expectations.
The Lands Department announced the project had been awarded to Harbour Centre Development, the Wheelock and Company hotel and property investment arm which owns the Marco Polo Hongkong Hotel.
The land price was about HK$13,535 per square foot, above market expectations of up to HK$10,000 per sq ft.
Michael Li Hon-shing, executive director of the Federation of Hong Kong Hotel Owners, said it was difficult to get a hotel site in a prime location.
"Even if we have a new development area such as the West Kowloon Cultural District, there is no site for large-scale hotel development," he said. "The Murray Building is in Central and accessible from core districts such as Admiralty. If developers have confidence in the hotel industry, naturally they would offer a higher price for Murray Building."
Land lease restrictions require the winning bidder to maintain the exterior structure of the 27-storey building in Cotton Tree Drive. The developer will be allowed to use up to 70 per cent of the gross floor area for hotel rooms and the remaining 30 per cent for entertainment and retail purposes.