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China’s sportswear giant Li Ning buys Henderson Land’s Harbour East for US$282 million to house its Hong Kong headquarters
- The 25-storey mixed office and retail building in North Point was acquired for HK$2.2 billion (US$282 million) to house Li Ning’s headquarters in Hong Kong
- The purchase reflects Li-Ning’s view about the potential of its Hong Kong business and follows the lease of a 7,000 sq ft shop as its first flagship store last year
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Li Ning, China’s biggest sportswear manufacturer, bought a 25-storey mixed office and retail building in North Point from Henderson Land for HK$2.2 billion (US$282 million), to house its headquarters in Hong Kong, in what is seen as a shot in the arm for the city’s slowing office property market.
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Li Ning’s acquisition of the property comes at a challenging time for Hong Kong’s property sector, particularly the office segment, which is grappling with record-high vacancy rates.
The building, known as Harbour East, houses retail tenants such as Five Guys, Frites, Pacific Coffee and Subway, and has a total land area of about 9,600 sq ft and a gross floor of about 144,000 square feet. The building includes 22 storeys of office space and two storeys of retail areas.
“The purchase of the property for use as Hong Kong headquarters of the group via the acquisition demonstrates the group’s confidence in its business prospects in Hong Kong and marks the implementation of its plan to strengthen its business development internationally,” the company said in a filing with the Hong Kong exchange late on Sunday.
“The board believes that the development potential of the group’s business in Hong Kong is substantial,” the filing said.
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Li Ning’s purchase emerges amid declining office rents in one of the world’s priciest property markets.
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