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Sale tender launched for 3 floors at distressed Hong Kong office tower

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Sale tender launched for 3 floors at distressed Hong Kong office tower

Receivers of the Convention Plaza in Wan Chai, Hong Kong, tapped JLL to launch a public tender for the sale of three office floors within the building that were purchased by China Energy Finance Corp. for a record-breaking HK$1.38 billion in 2016, the South China Morning Post reported.

The tender, for which a reserve price was not disclosed, will close Jan. 30, 2019, according to the Dec. 26 report.

The 21st to 23rd floors were first placed on the market in November in what had been the largest distressed sale of a commercial asset in 2018, with opening bids of HK$478 million, HK$480 million and HK$482 million, respectively. However, none of the bids received met the receivers' undisclosed target price tags.

The three floors could have fetched HK$1.44 billion, or HK$29,059 per square foot, if the sale had been successful, the newspaper reported.

An 8,131 square-foot office unit on the building's 34th level was also divested in October for HK$302 million, which translated to HK$37,117 per square foot, the SCMP added, citing data from Centaline Property Agency.

Embattled China Energy Finance holds a real estate portfolio valued at roughly 21.6 billion yuan as of March 1. A China Development Bank-led creditors committee was formed to dispose of all the properties after the conglomerate's chairman and executive director, Ye Jianming, was detained earlier in 2018 over bribery allegations.

As of Dec. 26, US$1 was equivalent to 6.89 Chinese yuan.