27/9/2017-5

Newly confirmed to bid for the Excelsior Hotel

Wenhua Oriental International Group earlier its Causeway Bay Hong Kong Excelsior Hotel launched a market test response, and received a number of acquisitions, including Sun Hung Kai Properties (00016) confirmed bid. The market valuation of up to 34.2 billion yuan, the property if changed hands, will become the most valuable commercial properties in Hong Kong.

Confirmation of entry to the Excelsior Hotel (left). Adjacent to the group’s Causeway Bay World Trade Center. (Yuan Zhihao photo)

Rebuild synergistic effect

Xindi Deputy Managing Director Thunder to the newspaper confirmed that the Group has bid for Causeway Bay Hong Kong Excelsior Hotel, is now waiting for the owners to reply to the results.

Some market participants believe that, as the Excelsior hotel adjacent to the new Causeway Bay World Trade Center, if the two buildings of the ownership of the future reconstruction will play a greater synergies.

Newspaper newspaper on the latest progress of the hotel to make inquiries, Wenhua Oriental International Group said there is no response. The group has announced this month that a number of potential buyers have received proposals for the acquisition of the hotel, which will serve as a basis for further consideration of future corporate strategies. If there is progress, there will be further announcement, the negotiations have not yet implemented.

City received the hotel received the purchase of which, rumors have a copy of the consortium also includes Hysan Industrial (00014), and a number of Chinese consortium and so on.

However, there are market participants analysis, the Chinese consortium won the Excelsior Hotel more opportunities, mainly because China has always been inclined to buy a complete project or land, not good at the acquisition of property reconstruction. In addition, the recent central strict restrictions on mainland enterprises outside the merger, so that the Chinese consortium shot more concerns.

Located at Gloucester Road, Excelsior Hotel has full sea views and offers over 860 guest rooms. The project was approved by the Buildings Department two years ago to construct a 26-storey commercial building with a total floor area of ​​over 68,000 square feet. In June this year, Wenhua announced that it would review the long-term strategic plan for the Excelsior Hotel and decide to test the market response to the possible sale of the property. At that time the market valuation of the Excelsior Hotel from about 24 billion to 34.2 billion yuan, per square foot floor price of about 35,000 to about 50,000 yuan.

Yangfang 650 million purchase Mong Kok commercial buildings

In addition, other commercial properties are also sought after, Sunshine Real Estate Fund (00435) announced to 658 million yuan to buy Nathan Road, Mong Kok, No. 591 Fengshun Commercial Building, the whole building. The building is a 22-storey commercial building with a total area of ​​about 34,651 square feet, including a retail portion of about 11,627 square feet and an office space of about 23,024 square feet. The seller will rent the whole property after the transaction, the office part is a one-year lease, the retail part is a four-year lease.