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Hong Kong tower sells for record $5bn
3 Nov

The world’s biggest single property sale has taken place in Hong Kong after a 73-storey skyscraper owned by the region’s richest man, Li Ka Shing, was snapped up for a record HK$40.2bn ($5.2bn; £3.8bn).

In a statement to the Hong Kong stock exchange, Li’s CK Asset Holdings confirmed that the sale of its 75% stake in the building had gone through for HK$40.2b– a record for a Hong Kong office tower, Bloomberg reports.

The acquisition of Hong Kong’s fifth tallest building, known as The Center, was made by C.H.M.T. Peaceful Development Asia Property Ltd. The company is a “special purpose vehicle” set up specifically to undertake the acquisition, the CK Assets statement added.

According to local media, the consortium’s main shareholder, with a 55% stake, is a Beijing-based China Energy Reserve and Chemicals Group whilst the rest comes from Hong Kong investors.

Indeed, Hong Kong’s property boom shows no signs of slowing down, with some expecting to see similar transactions from Chinese investors in the near future.

“The selling price is reasonable ... it’s a positive signal to the market and I expect we’ll see more large transactions of office buildings in Q4,” said Tom Ko, executive director of real estate consultant Cushman & Wakefield.

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