NewCheuk Nang sells headquarters building in Wan Chai for HK$800 million
Deal for Wan Chai tower made at price 9pc lower than previous offer
Cheuk Nang (Holdings) has agreed to sell its headquarters, Cheuk Nang Plaza, in Wan Chai for a price not exceeding HK$800 million to ITC Properties Group.
The 55,621 square foot 31-storey commercial building with 25 car parking spaces on Hennessy Road generates a monthly rental income of HK$1.5 million.
The price tag translates into HK$14,383 per square foot, about 9 per cent lower than the previous asking price. Last year, Cheuk Nang offered the building at HK$880 million.
"The proceeds from the sale will be used to finance our property projects in Malaysia and Macau," chairman Cecil Chao Sze-tsung told the South China Morning Post yesterday.
Cheuk Nang had three million sq ft of properties under development in Malaysia and Macau, Chao said, adding that most of the company's projects in Hong Kong and mainland China had been completed.
He rejected suggestions the sale of its only commercial building in Hong Kong indicated the company was retreating from the city's property market.