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Loan to Acquire Hong Kong's Most Expensive Office Tower Gets Costlier

  • $2.1 billion loan pricing up 10bps after China Energy pulled
  • Pricing on mezzanine facility remains unchanged at 8 percent
The Center on Hong Kong island.
The Center on Hong Kong island.Photographer: Jerome Favre/Bloomberg
Updated on

The lead buyer has walked and now lenders are toughening their terms in a deal to buy Hong Kong’s most expensive office tower.

A senior bridge loan may see its yield rise as buyers and banks negotiate the HK$16.08 billion ($2.1 billion) package to finance the purchase of the building known as The Center from a company owned by billionaire Li Ka-Shing, according to people familiar with the matter. Last month, Bloomberg News reported that China Energy Reserve & Chemicals Group pulled out of the buyer group.