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Mapletree Investments, a private equity firm backed by Singapore’s Temasek Holdings, is reportedly selling the 19-storey Mapletree Bay Point building in Kwun Tong, Hong Kong for HK$9 billion (S$1.53 billion), reported Mingtiandi.
Completed in 2017, the Grade A office building has a net lettable area of 568,517 sq ft, and the selling price works out to HK$13,630 psf (S$2,322.42 psf) based on its gross floor area of 660,301 sq ft.
At present, 60 percent of the LEED Gold-certified property’s lettable space has been taken up.
Major tenants include US apparel company VF Corp (10,500 sq ft), American co-working giant WeWork (36,000 sq ft) and multinational bank HSBC, which has committed to occupy about 70,000 sq ft.
However, an expert who chose to remain anonymous revealed that the leasing momentum for Mapletree Bay Point may cool down in the coming months as its big floor plates only cater to a select group of clientele.
“The relatively large floor plates of some 36,000 sq ft can only attract multinational companies as small and medium-sized enterprises do not need space that big. However, multinational firms typically prefer relocating to areas like Taikoo and Quarry Bay on the Hong Kong Island when looking for offices,” the expert said.
While the building is a short distance from Ngau Tau Kok MTR station, it is less attractive than properties within the adjacent Kwun Tong or Kowloon Bay stops, where malls and restaurants are concentrated, the source noted.
Mapletree Investments originally bought the building’s site for about HK$3.769 billion in 2014, with a condition that the developer cannot sell the property on a strata-title basis. Back then, it represented the first office project by a Singapore company in Hong Kong.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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