Proceeds from sale of eight floors will be used for expansion and to reduce debt
Cosco International Holdings has sold eight office floors at its flagship Cosco Tower in Sheung Wan to its parent firm for $1.4 billion.
The company said it would use the proceeds from the sale for expansion of its shipping operations and to reduce debt.
The sale, which totals 172,660 square feet, includes the 39th, 40th, 42nd and 47th to 51st floors in the 52-storey building.
Cosco International bought the eight floors from parent company Cosco Hong Kong for $1.66 billion in April 1998.
The latest transaction value translates into an average price of $8,120 per square foot, which property consultants said was in line with market prices.
Chartersince Surveyors associate director Desmond Poon Chi-ming said an entire office floor on the upper levels of Shun Tak Centre, also in Sheung Wan, recently sold for $7,900 per square foot.