Manulife (International) Limited has agreed to buy the West Tower at the One Bay East development in Kowloon East, Hong Kong. The deal, which is worth HK$ 4.5 billion (£379 million), is the largest single office tower purchase in Kowloon. CBRE Group’s Hong Kong office was the advisor for the transaction.
The company decided to make the significant investment to expand its franchise in Hong Kong to accommodate its business operations in Asia and it is expected to meet its current and future needs.
The 21-story building is part of a 1.025 million sq ft development which includes the West Tower and a twin building, called the East Tower. The developer is Wheelock Properties, and construction on the One Bay East project started in February 2012. It is expected to be completed at the end of 2015.
The West Tower of One Bay East will be known as Manulife Tower. Measuring 512,000 sq ft, it will be the company’s Hong Kong base of operations. Manulife will move into its new office in 2016.
A number of multinational corporations have decided to move to Kowloon East, especially since the government has announced plans to turn it into Hong Kong’s CBD2.
Kowloon East is made up of the Kowloon Bay Business Area, Kwun Toon and the former Kai Tak Airport. Manulife was one of the first major corporations to move its Hong Kong office to Kwun Tong in 2010.
One East Bay was chosen because it is situated in the heart of Hong Kong’s Central Business District. Several other multinational and local companies are likely to make the same choice as Manulife and decide to locate in the area.
Wheelock Properties’ Kowloon East Waterfront Portfolio extends along 1,650 feet of coastline along the CBD2 and includes Wharf T&T Square. The company has plans for a future residential development of Kowloon Godown.
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