Pricey Hong Kong Office Tower’s Marketing Halted After No BidsBy
Champion REIT wanted to sell tower for as much as $3.1 billion
Langham Place Office Tower went on the market in July
Hong Kong’s Champion REIT said it halted the marketing of a 59-story office tower that it wanted to sell for as much as HK$24.5 billion ($3.1 billion).
Chief Executive Officer Ada Wong said the company is taking a “passive” role with the Langham Place Office Tower in Mongkok, up for sale since July.
Champion REIT had put the tower on the market last year to make the most of heated property prices in Hong Kong. The real estate firm marketing the building, Savills Plc, set the indicative price at almost twice the consensus estimate in a Bloomberg survey.
“I am not surprised -- they were too aggressive and the asking price was too high," said Siu Fung Lung, a property analyst at CGS-CIMB Securities. Mainland buyers weren’t keen on a location far from the central business district with no sea view, he said.
For her part, Wong said there were no plans to appoint a new agent after Savills’s role ended. “Anyone can give me an offer and I would consider it,” she said.