Advertisement

Allied Kajima sells Tregunter towers for $2.2b

Reading Time:2 minutes
Why you can trust SCMP
SCMP Reporter

HONG Kong China has agreed to buy Tower One and Tower Two of the Tregunter luxury development for $2.2 billion, the equivalent of $5,400 per square foot, in one of the territory's largest residential property deals.

The distinctive pink towers, in the news last year because of the alleged discrimination of domestic workers from the Philippines there, are being sold by Allied Kajima, the original developer, which will be sitting on a cash pile of $2 billion with minimal debts, according to the company.

Patrick Lee Seng-wei, executive director of Allied Properties, described the price as ''very attractive''.

Advertisement

Allied Properties holds 50 per cent of Allied Kajima, the rest being held by Kajima Corp of Japan.

Hong Kong China, which is 74 per cent owned by Lippo Limited, has already paid a cash deposit $439.8 million, and will pay a further $439.8 million on or before July 27. The remaining $1.3 billion will be paid on December 30 at the latest.

Advertisement

Hong Kong China said it would get the money by ''borrowings from financial institutions and the internal resources of Lippo and Hong Kong China''.

There are 130 luxury properties in the two towers, which have a gross floor area of 407,260 sq ft. The buyers put current rental income at $6.18 million a month.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x