Mandarin Oriental International, part of the Jardines Group, is in talks to sell the upper 13 floors of One Causeway Bay in Hong Kong to Alibaba Group Holding, a newspaper reported. The deal is worth about HK$7 billion (S$1.16 billion), the report in the Hong Kong Economic Times on Sept 30 said. Shares of Mandarin Oriental jumped on the news, with the stock closing up 6.8 per cent to US$2.35 on Sept 30 in Singapore.
One Causeway Bay was developed by Mandarin Oriental. It has 29 floors and retail space, according to an agency website. Alibaba has been making inroads in Hong Kong, along with its fintech affiliate Ant Group, as the companies expand overseas in search of growth. The Jack Ma-backed firm would be taking advantage of a lull in the city’s commercial real estate market, where valuations have dropped and vacancy rates have surged to about 17 per cent.
One Causeway Bay in Hong Kong
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