Exclusive | Hong Kong tycoon Victor Li makes first major move as boss with revamp of Hutchison House tower
Analysts say the value of the building could triple to some US$3 billion as Li looks to emerge from the shadow of his famous father, Li Ka-shing
Victor Li Tzar-kuoi has embarked on his first major project since taking over the reins of Hong Kong conglomerate CK Hutchison from his billionaire father Li Ka-shing with the planned redevelopment of the 44-year-old Hutchison House office tower in the city’s Central district.
Three people familiar with the plan said that CK Asset Holdings, the conglomerate’s property arm, had given tenants six-months’ notice to vacate the 22-storey building under a sale and redevelopment clause in their rental contracts.
The plan, which analysts said could triple the value of the building, marks Victor Li’s emergence from the shadow of his father, a Hong Kong rags-to-riches legend nicknamed “superman” for his deal-making prowess who retired at the conglomerate’s annual meeting in March at the age of 89.
“Victor Li has to show his capability to bring the conglomerate to a step forward after he took over the business empire,” said Phillip Capital Management fund manager Li Kwok-suen. “Redevelopment of Hutchison House will boost the asset value and beef up its property portfolio.”
The building is adjacent to the world’s most expensive commercial plot, a former car park in Murray Road that was sold to CK’s rival Henderson Land Development for a record HK$23.28 billion (US$2.97 billion), or HK$50,064 per square foot, in May 2017.
No final decision has been made in regards to the redevelopment of Hutchison House
That sale has driven up the valuations of buildings in the area, which is Hong Kong’s main business district. A redevelopment of Hutchison House could lift its value to as much as HK$25 billion, analysts said.