WHARF REIC(HK:01997) Zhi Tong Cai Jing·2025-10-20 07:49Core Viewpoint - Hong Kong real estate stocks experienced significant gains following a major commercial property transaction involving Alibaba Group and Ant Group, which purchased a commercial office building for HKD 6.6 billion, marking the largest office sale in Hong Kong this year [1] Group 1: Market Reaction - Kowloon Development (01997) rose by 4.36% to HKD 22.48 - Hysan Development (00014) increased by 3.01% to HKD 16.09 - Swire Properties (01972) gained 2.14% to HKD 21.92 - New World Development (00017) saw a rise of 1.36% to HKD 7.43 [1] Group 2: Transaction Details - Alibaba and Ant Group acquired the 13th floor of the One Island East building in Causeway Bay for HKD 6.6 billion - This transaction surpassed the previous record set in March, where HKD 6.3 billion was paid for a 9-story office building at Central Plaza, making it the largest office sale in Hong Kong this year [1] Group 3: Analyst Insights - JPMorgan's report indicates that this large transaction will help stabilize the capitalization rate of Hong Kong's office market and reduce commercial real estate risks - The bank anticipates that more leading companies from mainland China may show interest in purchasing office properties in Hong Kong for regional or non-mainland headquarters - The stabilization of Hong Kong's office capitalization rate is expected to benefit Hong Kong Land and Swire Properties, while the transaction may negatively impact Kowloon Development due to the likelihood of Alibaba relocating from Times Square [1]