Alibaba Group (9988) is in advanced talks to purchase a significant portion of the "One Causeway Bay" commercial building in Hong Kong's Causeway Bay from Mandarin Oriental Hotel Group for HK$7 billion, according to a local media report citing sources.
The potential deal involves the top 13 floors of the Grade A office tower, which stands on the site of the former Excelsior Hotel. Sources indicate the acquisition covers around 270,000 square feet of space across these floors, with a price tag of nearly HK$26,000 per square foot.
Should the transaction be finalized, its total value would surpass the previous record for the year's largest commercial property deal—set by Hong Kong Exchanges and Clearing's (0388) HK$6.3 billion purchase of nine floors in Exchange Square One—making it the new top deal.
In a statement, Mandarin Oriental International confirmed it is in discussions regarding the potential sale of a number of office floors within One Causeway Bay. However, it added that there can be no certainty that any sale will take place, nor as to the terms of any sale. A further announcement will be made if and when appropriate.
Following the news, shares of Mandarin Oriental International rose 5.45 percent to US$2.32 in Singapore trading.
