Hong Kong – 50 Connaught Road Central Sold For HKD 4.88 billion

In the largest transaction for office space in Hong Kong this year, a 28-storey office block was sold for HKD 27,888 psf.

Agricultural Bank of China Ltd has announced its acquisition of a 28-storey office block in Hong Kong’s prime Central district for HKD 4.88 billion. The property’s yield is approximately 4% per annum, which is higher than the current average Grade A office yield of between 3% to 3.5%. The Bank will be using the property as its new regional headquarters, said Colliers International, which advised on the deal.

"In the marketplace, the key challenges for many potential investors are the cost of financing and insufficient loan-to-value ratio for sizeable investment," said Antonio Wu, deputy managing director of Colliers International (Hong Kong). "Thus, end-users armed with abundant financial resources hold an edge over their competition."

Wealthy mainland Chinese individuals and companies have been looking overseas for attractive commercial property investment deals, a trend accelerated by Beijing’s tightening policies applied on the domestic housing market.

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