Property

Evergrande Acquires Hong Kong Landmark Office Building, Beachheading Hong Kong with Strength

HONG KONG, Nov. 13, 2015 /PRNewswire/ -- Evergrande (HK.3333) announced on November 12 that it plans to acquire Hong Kong landmark top office building - MassMutual Tower. After the acquisition, Evergrande will become the only private enterprise of mainland China with independent office building in Hong Kong.

The announcement revealed that this top office building covers an area of 2,138.8 square meters, with a total construction area of 32,090.9 square meters, height of 94.85 meters and a total of 26 floors, up to 100% occupancy rate. The tenants are all major international car companies, insurance companies, multinationals and so on. And the project is close to Admiralty, Wanchai MTR station and Hong Kong Police Headquarter, with front line sea view of Victoria Harbor and huge appreciation potential.

Evergrande's overall acquisition of office building in Hong Kong triggered multi-guess, and the industry sources believe that Evergrande is now the most highlighted mainland China company listed in Hong Kong, which may name this building as "Evergrande Center", for better integration into global capital markets.

According to the announcement, Evergrande can only pay 10% down payment, and the remaining will be paid in six years, with only 10% payment each year. The company expressed that "Commercial property office block trading often has to face the pressure of fund, but Evergrande only needs a small amount of money each year; its strong control  of cash flow is obvious in buying an entire top office building in the core of Hong Kong without precipitation of funds".