Core Viewpoint - Morgan Stanley reports that Hong Kong has recently recorded its largest office building sale in years, with the sale of the Mandarin Oriental Hotel for HKD 7.2 billion, indicating a potential stabilization in the office capitalization rates in Hong Kong [1] Group 1: Transaction Details - The Mandarin Oriental Hotel was sold for HKD 7.2 billion, with Alibaba (09988) and Ant Group acquiring the top 13 floors of the One Island East building [1] - The estimated monthly rent for the property is assumed to be HKD 65 per square foot, leading to a capitalization rate of 3.3%, which is comparable to the average capitalization rates in Wanchai or Causeway Bay [1] Group 2: Market Implications - This large transaction is believed to help stabilize the capitalization rates for office buildings in Hong Kong and reduce commercial real estate risks to some extent [1] - The transaction is expected to impact Kowloon Warehouse Holdings (01997), as Alibaba's lease at Times Square is set to expire in 2028, likely leading to a relocation [1] - There is an expectation that more leading companies from mainland China may show interest in purchasing office properties in Hong Kong for their regional or non-mainland headquarters [1] Group 3: Beneficiaries - The stabilization of office capitalization rates is seen as beneficial for major office leasing developers in Hong Kong, specifically Hongkong Land and Swire Properties (01972) [1]

Core Viewpoint - Morgan Stanley reports that Hong Kong has recently recorded its largest office building sale in years, with the sale of the top 13 floors of One Island East to Alibaba-W (09988) and Ant Group for HKD 7.2 billion [1] Group 1: Market Impact - The transaction is expected to stabilize the capitalization rate of Hong Kong's office buildings and reduce commercial real estate risks to some extent [1] - The estimated monthly rent for the property is assumed to be HKD 65 per square foot, with a capitalization rate of 3.3%, comparable to the average rates in Wanchai or Causeway Bay [1] Group 2: Company Implications - The sale will likely impact Wharf Real Estate Investment Company (01997), as Alibaba's lease at Times Square is set to expire in 2028, suggesting a potential relocation [1] - Morgan Stanley believes that more leading companies from mainland China may be interested in purchasing office properties in Hong Kong for their regional or non-mainland headquarters [1] Group 3: Beneficiaries - The stabilization of Hong Kong's office capitalization rates is expected to benefit major office leasing developers such as Hongkong Land and Swire Properties (01972) [1]

Core Viewpoint - Morgan Stanley reports that Hong Kong has recently recorded its largest office building sale in years, with the sale of the top 13 floors of One Island Central for HKD 7.2 billion to Alibaba and Ant Group [1] Group 1: Transaction Details - The property was sold for HKD 7.2 billion, with an estimated monthly rent of HKD 65 per square foot [1] - The estimated capitalization rate for the property is 3.3%, which is comparable to the average capitalization rates in Wanchai or Causeway Bay [1] Group 2: Market Implications - This large transaction is expected to stabilize the capitalization rates for office buildings in Hong Kong and reduce commercial real estate risks to some extent [1] - The transaction may negatively impact Wharf Real Estate Investment Company, as Alibaba's lease at Times Square is set to expire in 2028, likely leading to a relocation [1] Group 3: Future Outlook - Morgan Stanley believes that more leading companies from mainland China may be interested in purchasing office properties in Hong Kong as regional or non-mainland headquarters [1] - The stabilization of office capitalization rates in Hong Kong is expected to benefit Hongkong Land and Swire Properties [1]