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DBS Hong Kong acquires six floors at The Center in US$334 million deal

Hong Kong’s biggest office deal this year signals return of confidence to city’s core commercial market

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The Center – once the world’s most expensive skyscraper – at 99 Queen’s Road, Central, Hong Kong. Photo: Nora Tam
Cheryl Arcibal
DBS Bank (Hong Kong) has agreed to pay about HK$2.62 billion (US$334 million) for six floors at The Center – once the world’s most expensive skyscraper – marking the city’s largest office transaction so far this year.

The lender acquired the 32nd, 36th, 37th, 56th, 62nd and 76th floors late last month, with the deal registered on Tuesday, according to Land Registry records. The purchase adds 151,934 sq ft of gross floor area, DBS said in a statement on Wednesday.

The price works out to roughly HK$17,238 per square foot – just over half the HK$33,000 per square foot paid by a consortium of investors for 48 floors in 2018, when the tower set a global record for office property values.
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DBS Hong Kong already owns and occupies eight other floors in the 73-storey building, further cementing its position as a major stakeholder in the Central landmark.

“This proposed investment underscores our unwavering commitment to Hong Kong and our confidence in its long-term economic vitality as a premier international financial centre and wealth management hub,” said Sebastian Paredes, head of North Asia and CEO of DBS Hong Kong, adding that the bank remained positive on the future prospects for Hong Kong’s “dynamic real estate market”.

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“This purchase, when completed, will position us well to further scale our business operations, ensuring we can better serve our customers and contribute to Hong Kong’s ongoing success,” he said.

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