Hong Kong's Hang Seng University joins property rush with US$11.6 million office deal

Group 1 - Hang Seng University has acquired 16 office units in a commercial building in Sha Tin for HK$90 million (US$11.6 million) as part of a government initiative to develop Hong Kong into a global education hub [1][6] - The acquisition includes office space measuring 19,139 sq ft and four car parking spaces, previously used by Alco Holdings for its operations [2][3] - The purchase price was based on a valuation of approximately HK$88.68 million conducted in October, with the deal expected to be finalized in January [4] Group 2 - Alco Holdings, the seller, plans to use the net proceeds from the sale to repay bank borrowings totaling HK$47.5 million and to address financial guarantees [5] - The sale is viewed by Alco as a favorable opportunity to realize property value at a reasonable price, and the company is considering leasing a more cost-effective office space [5] - The education sector in Hong Kong has seen increased activity in property acquisitions, with universities being prominent buyers following a period of declining asset prices [6][7]