Hong Kong property

Henderson sells Golden Centre office building for HK$4.4 billion

PUBLISHED : Thursday, 15 September, 2016, 8:49pm
UPDATED : Thursday, 15 September, 2016, 10:09pm

Henderson Land Development has agreed to sell its Golden Centre office building in Sheung Wan to an undisclosed buyer for HK$4.4 billion, according to a filing made to the Hong Kong Stock Exchange on Thursday.

The 27-storey building at 188 Des Voeux Road Central, which was built in 1991, has a gross floor area of approximately 156,000 square feet.

The sale is expected to be completed by December 1, the filing said, with an estimated gain of approximately HK$1.996 billion attributable to the company’s reported profit for the year ending December 31, 2016.

Earlier this year, there were market rumours that the developer had released 30 properties owned either by Henderson Land or its chairman Lee Shau-kee for sale with an indicative price of HK$68 billion, in areas including Kwun Tong, North Point and Central.

While Henderson has not disclosed the Golden Centre’s buyer, mainland Chinese companies have led demand for office property in the city.

Mainland developer China Evergrande Group paid Chinese Estates Holdings a record HK$12.5 billion for the 26-storey Mass Mutual Tower in Wan Chai.

Last month, Hong Kong’s wealthiest man Li Ka-shing put 73-storey tower The Center up for sale at a valuation of HK$35 billion.

Henderson Land’s stock price fell 0.11 per cent on Thursday to HK$45.35 a share. The stock is up 5.69 per cent since January.