Hong Kong property group Swire Properties has sold 12 floors at the One Island East office tower to the Securities and Futures Commission (SFC) for HK$5.4bn (€634m).
Hong Kong market regulator SFC bought floors 42 to 54 in the 59-storey building with staged settlement due for completion in 2028.
Julia Leung, SFC’s CEO said the acquisition was a cost-saving in the long run as the SFC invested in its own assets and eliminated rental expenses. Becoming an owner of the leased office space would spare the SFC from the disruptions of future relocations. The regulator currently occupies levels 45th to 54th in One Island East.
Swire Properties said the disposal would enable the company to realise cash from its investment in the asset. The proceeds from the disposal would be applied toward the general working capital requirement of the group.
This transaction represents the largest end-user office transaction in Hong Kong since 2019. Property consultant JLL, which was involved in the transaction, said the previous large end-user office acquisition was by Hong Kong power company, CLP Group, in 2021. It acquired the office portion at Far East Consortium’s Kai Tak project for HK$3.38bn.
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