Wharf's purchase of Crawford House in Central marks strategic shift

Wharf (Holdings) has acquired Crawford House from Wheelock & Co for about HK$2.69 billion, as part of a shift to focus more on investment properties given the softness in the development sector on the mainland.

"The company's future investment will focus on investment properties, from development properties. The purchase of Crawford House is the first step of the move, and we are now building investment properties on the mainland," said Stephen Ng Tin-hoi, deputy chairman and managing director of Wharf.

The deal for the commercial-office building in Central was announced as Wharf - in which Wheelock has a 54.8 per cent stake - posted a 12 per cent drop in underlying profit to HK$5.02 billion for this year's first half from last year, as development profits declined due to the sluggish mainland market.

Wharf said it agreed yesterday to acquire from Wheelock 100 per cent of Ridge, an investment firm that owns Crawford House in Queen's Road Central in the heart of the financial district.

As part of the deal, Wharf will also acquire the loan of about HK$66 million owed by Ridge to Wheelock.

Built in 1977, the 23-storey Crawford House has been independently valued at HK$5.79 billion. Completion of the deal is due by September 10.

"We have reservations on the mainland residential market and will not make new acquisitions in the short term," said Ng, adding that "the company would probably look for new investment properties on the mainland and in Hong Kong".