Chinese tech giant Alibaba Group Holding Ltd. is reportedly in talks to acquire the top 13 floors of One Causeway Bay in Hong Kong in a deal valued at around HK$7 billion ($900 million), according to the Hong Kong Economic Times, citing unnamed sources.
Currently, Alibaba and its affiliates lease 10 floors at Times Square in Causeway Bay, with the tenancy set to expire in 2028. The potential purchase reflects Alibaba’s continued expansion in Hong Kong alongside its fintech affiliate, Ant Group Co., as both companies seek growth opportunities abroad.
Analysts say Alibaba may be capitalizing on a slowdown in Hong Kong’s commercial property market. Office valuations have dropped, and vacancy rates have risen to about 17%. “The city’s office vacancy rate is within striking distance of an all-time high,” noted Bloomberg Intelligence analysts Patrick Wong and Francis Chan in a Sept. 29 research note.
One Causeway Bay, developed by Mandarin Oriental Hotel Group, spans 29 floors and includes retail space, according to agency listings. The acquisition would mark a significant investment for Alibaba in Hong Kong’s office sector amid a challenging real estate environment.
