A landmark building owned by Hong Kong’s richest man Li Ka-shing has sold for a record of more than $5 billion, a report said Monday, indicating that the city’s booming property sector shows no sign of slowing down.
Li’s CK Asset sold its 75 percent stake in The Centre, which is located in the city’s bustling Central district, to a consortium led by a Chinese energy firm, the Hong Kong Economic Journal said, citing unnamed sources.
The city’s fifth tallest skyscraper would become Hong Kong’s most expensive commercial building ever sold if the HK$40.2 billion (S$7 billion) deal goes through, the paper reported.
The sale would surpass a transaction earlier this year, where a prime commercial lot – occupied by a multi-storey car park also in Central – was sold off for HK$23.28 billion (S$4 billion) by the government to Henderson Land, which is owned by the city’s second richest man, Lee Shau-kee.
(Coming soon: CDL’s Kwek Leng Beng looking for property bargains post-Brexit.)
A spokeswoman from CK Asset said no immediate information was available. The deal will soon be announced and the name of the building may be changed, the report added.
Hong Kong’s surging property market has become a political issue as costs in one of the world’s most expensive metropolises continue to soar, forcing some small businesses to close owing to sky-high rents while many residents cannot afford to buy or rent decent homes.
Commercial and residential property prices have been fuelled by an influx of money from wealthy mainland Chinese investors and developers.
The 89-year-old Li announced a sweeping reorganisation of his businesses in early 2015, saying he wanted to secure stability in future.
ey/dan – AFP
Photo credit: Anthony Wallace/AFP