Old-School Tycoons of Hong Kong Are Losing to China s Moguls yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Shirley Zhao, Bloomberg News Adrian Cheng , Bloomberg
(Bloomberg) The prediction was vintage Jack Ma, as provocative as it was prescient.âThis is the era of the internet,â the Chinese billionaire proclaimed in October 2013, just weeks after his plan to take Alibaba Group Holding Ltd. public in Hong Kong had been scuttled by regulators. âIt no longer belongs to Li Ka-shing.âMaâs dig at the famed Hong Kong tycoon raised plenty of eyebrows at the time, but few would disagree with him now. The past few years have seen a remarkable shift in fortunes between Chinaâs tech-savvy moguls and their old-school Hong Kong counterparts a trend that shows few signs of fading any time soon.
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Hong Kong sells Causeway Bay site for $2.5B
Sale of 159,330 sf property seen as sign of confidence for market
New York Weekend Edition /
TRD Staff
The parcel of land in Causeway Bay (Google Maps)
The Hong Kong government auctioned a parcel of land in Causeway Bay this week for the first time since 1997, and it sold for much more than expected.
Hysan Development Co. and Chinachem Group paid the equivalent of $2.5 billion for the 159,330-square-foot property, according to Bloomberg. Midland IC&I most recently valued the property on Caroline Hill Road at around $1.9 billion.
(May 12): Hong Kong sold a rare land parcel in the Causeway Bay area for a higher-than-expected price, a sign of recovery for the city’s commercial real estate market.
The government sold the site to Hysan Development Co and Chinachem Group for HK$19.8 billion (US$2.5 billion) in a public tender, according to a statement. That exceeds a previous valuation of about HK$15 billion by Midland IC&I Ltd, reflecting optimism from developers that Hong Kong’s office and retail markets will rebound.
The 14,802-square-meter (159,330 square-foot) land plot provides a rare opportunity to build new commercial property in a prime shopping district. It can yield a maximum of 100,000 square meters of floor area. However, the premium site comes with demanding clauses, including retaining a portion for community facilities and 125 public car parking spaces.