Swire sells Cityplaza office for $9.8b

Swire Properties (1972) agreed to sell Cityplaza One, a 21-story office building at Taikoo Shing in Quarry Bay, to real estate private equity firm Gaw Capital Partners for HK$9.84 billion, or HK$15,609 per sq ft.

The property was valued at about HK$7.93 billion as of June 30 by an independent valuer, Swire Properties said.

The developer is expected to record a gain on disposal of approximately HK$5.47 billion on an underlying basis. The proceeds from the disposal will be put towards Swire Properties' general working capital requirements.

Cityplaza One has a gross floor area of about 629,000 square feet.

This came four weeks after the shopping mall landlord said it would sell 32 car parking spaces and four motorcycle parking spaces at Taikoo Shing through tender - the first time in nearly four decades.

Two years ago, the developer sold Cityplaza Three and Cityplaza Four for HK$15 billion to mainland investor Chen Changwei's Henglilong Investments. Later, Gaw Capital took up a 49 percent stake in the pair of office towers.

In the primary market, New World Development (0017) will offer 343 units at phase two of The Pavilia Farm in Tai Wai for sale on Saturday.

The developer previously released 343 units in the second price list in phase two at an average HK$20,399 per sq ft after discounts, 2.8 percent higher than the first price list.

The cheapest flat, measuring 330 sq ft, is offered at HK$6.99 million, or HK$21,188 per sq ft after discounts.

Meanwhile, Hong Kong Ferry (0050) and Empire Group released 123 units in the fifth price list of Starfront Royale in Tuen Mun, at an average HK$15,131 per sq ft after discounts, 3.7 percent higher than the first price list.

But two buyers forfeited deposits of about HK$400,000 in total after walking away from purchases of two flats at the project. They involve a 208-sq-ft flat, which was priced at HK$3.42 million, and a 290-sq-ft flat, which was offered for HK$4.62 million.

In other news, the Urban Renewal Authority said a total of 43 remaining units in eResidence are designated as "Starter Homes" units and open for application by eligible persons starting from November 10 until 7pm on November 23.