Champion Real Estate Investment Trust will buy office space in Citibank Plaza from Hong Kong’s government for HK$2.16 billion ($278 million), consolidating its ownership of the city-center office complex.
The company will buy 78,316 square feet of floor area, of which 54,896 square feet is rentable, from the Financial Secretary Inc., a government body, according to a Hong Kong stock exchange filing yesterday. Champion said it’s paying an 11 percent premium to the appraised value of HK$1.95 billion.
The purchase means that Hong Kong-based Champion now owns 100 percent of Citibank Plaza, which is comprised of the 47-story Citibank Tower and the 37-story ICBC Tower. The government bought the space from the company for HK$820 million in 1996 for use as offices for the city’s Legislative Council, which has since moved to new and larger premises.
“The REIT manager believes that owning the entire Citibank Plaza will provide Champion REIT with greater operational control of the Grade A office building, for example, the ability to unilaterally implement improvement and refurbishment works which would enhance the rental value,” the trust said.