Mandarin Oriental International, part of the Jardine conglomerate, confirms it is in talks to sell units at One Causeway Bay to Alibaba Group Holding.
According to the Hong Kong Economic Times, the deal involving 13 office floors in the property is worth some HK$7 billion.
CBRE, which lists this property on its website, says that One Causeway Bay has around 500,000 sq ft of office space across 24 floors and 55,000 sq ft of retail space in the 4-level retail podium.
This property is redeveloped from the former Excelsior Hotel and was completed in 2Q this year.
The Chinese tech giant now leases 10 floors at neighbouring Times Square in Causeway Bay. The tenancy is set to expire in 2028, according to the HKET.
"The company confirms that it is in discussions about a possible sale of certain office space within One Causeway Bay," says Mandarin Oriental in a statement.
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"There can be no certainty that any sale will proceed, nor as to the terms on which such sale might be made. A further announcement will be made if and when appropriate," the company adds.
Mandarin Oriental International shares gained 4.55% to $2.30 as at 10.52 am, extending a 32.18% gain year to date.
