Victor Li Tzar-kuoi, the new chairman of CK Asset Holdings Ltd. and CK Hutchison Holdings Ltd., is looking to transform the HK$7.7 billion Hutchison House building in Hong Kong's Central district into an office structure worth up to HK$25 billion, the South China Morning Post reported, citing three sources familiar with the plan.
To pave the way for the remodeling, CK Asset reportedly notified tenants of Hutchison House to vacate the property within six months, the sources added.
Victor Li took over the chairmanship of the business empire from his father Li Ka-shing in May, making this the first major development the younger Li is enacting.
Analysts cited in the report said Hutchison House will have an end value of between HK$20 billion and HK$25 billion once refurbishment us complete. According to surveyors cited by the newspaper, the redevelopment of the 22-story building could cost the group about HK$5 billion, based on HK$10,000-per-square-foot building costs.
In 2012, the CK Hutchison conglomerate secured permission to redevelop the building into a 41-story tower, shorter than the 47-story building it got approval for in 2008. Different variations of plans for the building all spanned 500,000 square feet of gross floor area, the June 7 report added.
In a matter concerning a separate CK Asset project, Hong Kong's Urban Renewal Authority is widening the scope of ongoing archaeological work at the 50,000-square-foot site of its residential joint venture with the listed developer in the city's Wong Tai Sin area. The (Hong Kong) Standard, citing Radio Television Hong Kong, reported June 8 that the decision followed the onsite discovery of historical relics.
