Date
12 December 2017
Citigroup will pay a record HK$5.43 billion for the One Bay East office tower. Photo: HKEJ, AFP
Citigroup will pay a record HK$5.43 billion for the One Bay East office tower. Photo: HKEJ, AFP

Citi signs up for record HK office deal

Financial services giant Citigroup Inc. has set a record for Hong Kong grade-A offices, agreeing to pay HK$5.43 billion (US$700 million) for a 21-story Kwun Tong office tower destined to become the banking group’s city headquarters, the Hong Kong Economic Journal reported Wednesday.

The One Bay East tower is part of a development by Wheelock Properties (Hong Kong) Ltd. and has a total floor area of 512,000 square feet, translating to a unit cost of HK$10,596 per square foot.

The price is 20 percent higher than the amount Manulife Financial Corp. in April last year for the development’s other tower. Manulife paid HK$4.5 billion back then, with an unit cost of HK$8,789. 

One Bay East is expected to be completed by the end of next year and Citi could move in the summer of 2016 at the earliest, the report said.

Wheelock executive director Ricky Wong Kwong-yiu said the bank paid HK$460 million on stamp duty and other taxes, according to the report.

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