Property company Great Eagle is selling shopping and office assets in Hong Kong to affiliate Champion REIT for HK$12.5 bn (EUR 1.08 bn) in one of the largest ever transactions involving a real estate investment trust in Asia.
Property company Great Eagle is selling shopping and office assets in Hong Kong to affiliate Champion REIT for HK$12.5 bn (EUR 1.08 bn) in one of the largest ever transactions involving a real estate investment trust in Asia.
In a statement, Hong Kong-based Great Eagle said the company is transferring the shopping mall, an office tower (apart from four floors) and a car park at its 180,000 m2 Langham Place property to Champion. The hotel element of the property is not part of the sale.
Great Eagle said that the asset was sold at a discount of 11.8% compared to the valuation carried out by property advisor Savills. Great Eagle will receive new units in Champion REIT with an approximate value of HK$3.0 bn and about HK$5.0 bn in cash in the deal.
Great Eagle was founded in 1963 and is incorporated in Bermuda. The group develops, invests in and manages prime office, retail, residential and hotel properties in Hong Kong, North America and Europe.
