Mandarin Oriental mulls sale of part of One Causeway Bay in Hong Kong to Alibaba

[SINGAPORE] Mandarin Oriental is in talks to sell part of One Causeway Bay in Hong Kong to a buyer, which various media reports have identified as Jack Ma’s Alibaba Group.

In a a bourse filing on Tuesday (Sep 30), the company confirmed media speculation about its potential sale of part of its interest in the property.

“The company confirms that it is in discussions about a possible sale of certain office space within One Causeway Bay,” said Mandarin Oriental, which is part of the Jardine conglomerate.

“There can be no certainty that any sale will proceed, nor as to the terms on which such sale might be made. A further announcement will be made if and when appropriate,” the company added.

Citing unnamed sources, Hong Kong Economic Times reported that the Chinese tech giant is looking to purchase the upper 13 floors of One Causeway Bay for around HK$7 billion (S$1.2 billion).

Alibaba and its affiliates currently lease 10 floors at Times Square in Causeway Bay, and their tenancy is due to expire in 2028, the publication said.

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The potential sale comes as Hong Kong’s office vacancy rates stand at what Bloomberg Intelligence analysts on Sep 29 described as within “striking distance of an all-time high”.

Developed by Mandarin Oriental Hotel Group, One Causeway Bay has 29 floors of office and retail space, according to the website of property company CBRE.