Citi Acquires East Tower at One Bay East for $700 Million in Hong Kong’s Largest Ever Office Purchase
- Jun 26, 2014
Hong Kong—CBRE recently announced its participation in the largest office tower purchase in the Hong Kong office market.
The landmark transaction for the Hong Kong office market will see Citi purchase the East Tower at One Bay East from Wheelock Properties Ltd. for HK$5.425 billion ($700 million). Located in Kowloon East, Hong Kong’s emerging second Central Business District, the new 21-story, Grade A office building features 512,000 square feet and two levels of basement car parking.
The team of CBRE real estate advisors who worked on the acquisition was led by Rhodri James, executive director, office services, Hong Kong, CBRE. “This deal represents another example of a large capital investment by a leading financial services company, who by purchasing an office building for self-use, will increase their ability to strategically plan their space requirements for the long-term as well as manage costs,” James says.
The other twin tower of the development, the West Tower was sold for HK$ 4.5 billion ($580 million) to Manulife (International) Limited, in a transaction on which the Hong Kong office of CBRE acted as advisor.
The One Bay East development is situated at the waterfront of Kowloon East and overlooks the harbor, the future cruise terminal and metro park.
Wade Cruickshanks, managing director, APAC region head of Citi Realty Services, says: “Citi has enjoyed 112 years of success in Hong Kong and it is our determination to continue to grow our business in Hong Kong. The purchase of the East Tower of One Bay East reinforces this commitment and is a testament of our belief in the Hong Kong Government’s vision for the future office market in Kowloon East, which we are confident will become a sought after location for MNC’s.”
Talking about the transaction, Ricky Wong, managing director of Wheelock Properties Limited, says: “We are delighted that Citi has chosen One Bay East as the strategic base for their business operation. Wheelock Properties has a proven track record in Grade-A office development and we are committed in delivering high quality property to meet the high and stringent office requirements of multinational companies.”