US sells Hong Kong consulate compound for HK$2.57b

[HONG KONG] The US has sold its consulate staff compound in one of Hong Kong's most exclusive neighbourhoods for HK$2.57 billion (S$453.8 million), amid escalating tensions between China and the US.

The price, announced Thursday by CBRE Group which handled the sale, was lower than the HK$3.1 billion to HK$3.5 billion valuation from Vincorn Consulting and Appraisal. The buyer wasn't named.

The site in Shouson Hill, on the southern side of Hong Kong Island, comprises six low-density apartment buildings spread over almost 95,000 square feet (8,825 square metres). The property was sold with vacant possession, giving the buyer potential to develop luxury housing with views over Deep Water Bay, CBRE said.

A US government representative said Wednesday the decision to sell the compound was part of its global reinvestment programme and some of the proceeds from the transaction would be reinvested into multiple properties the US owns in Hong Kong.

"It will not affect our presence, staffing or operations in any way," the spokesperson said in a statement.

The sale comes at a sensitive time, with US companies considering moving out of the city because of escalating political conflicts and disquiet over the national security law imposed by China. An American Chamber of Commerce in Hong Kong survey last month found about 40 per cent of its 154 members were considering leaving the city.

Shouson Hill is one of the city's most exclusive neighbourhoods where some of the city's richest tycoons, including Li Ka-Shing, own houses. The US government purchased the property in 1948, records lodged with the Land Registry show.

An adjacent property was bought by Chinese developer China Resources Land for HK$5.9 billion in 2018.

BLOOMBERG