Hong Kong Exchanges & Clearing has agreed to pay HK$6.3 billion (US$812 million) for office floors and retail space in One Exchange Square and other assets in Central from Hongkong Land, marking one of the city’s biggest commercial property transactions in two years.
The stock exchange operator said on Thursday that it would buy the top nine floors and some retail space on two lower floors in the building in the city’s main business district, according to a statement. It aims to turn the property into its permanent home after operating at the site for nearly four decades.
The company would also sign new long-term leases for several floors it currently occupies in the adjacent Two Exchange Square, with the hybrid buy-and-rent model providing more flexibility and resilience against property cycles, HKEX said in a statement.
“We are delighted to be unveiling the next exciting chapter of HKEX’s journey at Exchange Square, with the announcement of a strategic investment to establish our permanent home,” Chairman Carlson Tong said. “The Exchange Square has stood witness to the Hong Kong capital market’s remarkable transformation” into a global financial powerhouse, he added.
Thursday’s sale also expedites Hongkong Land’s asset-reshuffling plan to raise US$10 billion from its portfolio and refocus on the “ultra-premium” property market in the region following a strategic review in October.
