Wheelock enters into record breaking deal to sell Hong Kong building for $1.6 bil

(Oct 12): Mainland Chinese company LVGEM (China) Real Estate Investment will purchase a building from Wheelock & Co. for HK$9 billion ($1.56 billion), setting a record price per square foot for a commercial building in Hong Kong’s Kwun Tong area.

A sum of HK$788 million has already been paid for the purchase, which is slated for completion by Dec 29, according to a Wheelock statement to the Hong Kong Stock Exchange on Wednesday. A HK$4.6 billion payment will be made at the time, with the balance due in instalments to Wheelock subsidiary Wharf (Holdings), the company said.

It is the second-most expensive real estate deal in Asia this year, after CapitaLand Commercial Trust, Singapore’s biggest office landlord, agreed to buy BlackRock’s Asia Square Tower 2 for $2.1 billion in September, according to Sigrid Zialcita, managing director of research for Asia Pacific at Cushman & Wakefield.

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