Level 66 has a floor area of 26,967 sq ft while level 75 measures 23,901 sq ft. The total consideration works out to about HK$26,000 per sq ft, which is 54% lower than the HK$55,854 per sq ft paid for level 79 when it was sold in 2017.
Chan used levels 66 and 75 as collateral for loans from United Overseas Bank (UOB) and Taiwan’s Shin Kong Commercial Bank, said Mingtiandi referring to local media reports.
To this end, Tan notes that Citi’s Hong Kong analysts remain “muted” on the country’s property sector, especially its residential and office sub-sectors.
Grade A office rents in Hong Kong’s Central fell by 40.5% in June this year from their 2019 peak while office vacancy stood at 13.7% in July.
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“Rentable values [are] a valuation overhang but if en-bloc asset transactions pick up in 2025, it could also act as [a] reference point,” Tan writes.
“Given uncertainties on property valuation extending beyond [the] office [sector] into residential, investors’ concerns over Hong Kong CRE could cap upside for the sector despite prudent loan-to-valuations (LTVs), we think,” he adds.
As at 12.51pm, shares in DBS are trading 33 cents higher or 0.91% up at $36.69 while shares in UOB are trading 16 cents higher or 0.51% up at $31.55.
