Mei Ri Jing Ji Xin Wen·2025-10-18 04:15Core Insights - Alibaba and Ant Group have jointly invested $925 million (approximately 6.6 billion RMB) to acquire the top 13 floors of the One Island East building in Hong Kong, marking a shift from traditional rental office space to owning property [1][3][4] - This acquisition is intended to establish their Hong Kong headquarters and expand their international business [3][4] - The transaction is noted as the largest commercial property deal in Hong Kong for the year, surpassing a previous record set in March [5] Company Strategy - The move signifies a strategic shift for Alibaba and Ant Group, moving away from renting office space in Times Square, Causeway Bay, to owning their headquarters [7] - The acquisition is seen as a response to the recovering commercial property market in Hong Kong, with significant transactions occurring recently [7][8] Financial Details - The total acquisition price is $925 million, with a total building area of approximately 301,600 square feet, resulting in an average price of about 235,500 RMB per square meter [4][5] - After deducting sales costs, the remaining proceeds from the sale for the seller, Mandarin Oriental International, are expected to be around $758 million [4] Market Context - The commercial property market in Hong Kong has shown signs of recovery, with multiple high-value transactions reported in August, indicating increased investor interest [7] - The trend includes significant price adjustments in the market, making it attractive for long-term investors [7]