Alibaba Mulls Buying HK Office for $900 Million, HKET Says

Alibaba Group Holding Ltd. Bloomberg

(Bloomberg) -- Alibaba Group Holding Ltd. is in talks to buy the upper 13 floors of One Causeway Bay in Hong Kong, in a deal worth about HK$7 billion ($900 million), the Hong Kong Economic Times reported.

The Chinese tech giant and its affiliates are currently leasing 10 floors at Times Square in Causeway Bay, with their tenancy set to expire in 2028, the newspaper said, citing unidentified people.

Most Read from Bloomberg

Why US Cities Pay Too Much for Transit Buses For Lovers of Brick, Chicago Is a Wonderland After the Pandemic ‘Reset Button,’ Downtowns Reinvent Themselves A Showdown Over Speed and Safety, Italian-Style Trump Housing Agency Removes Lawyers Who Filed Whistleblower Report

Mandarin Oriental International Ltd. said it is in discussions about a possible sale of office space within One Causeway Bay, while adding that there’s no certainty that any transaction will proceed. Alibaba didn’t respond to a request for comment.

One Causeway Bay was developed by Mandarin Oriental. It has 29 floors and retail space, according to an agency website.

Alibaba has been making inroads in Hong Kong, along with its fintech affiliate Ant Group Co., as the companies expand overseas in search of growth. The Jack Ma-backed firm would be taking advantage of a lull in the city’s commercial real estate market, where valuations have dropped and vacancy rates have surged to about 17%.

“The city’s office vacancy rate is within striking distance of an all-time high,” Bloomberg Intelligence analysts Patrick Wong and Francis Chan said in a Sept. 29 note.

--With assistance from Shawna Kwan and Luz Ding.

(Updates with comments from the companies in the third paragraph)

Most Read from Bloomberg Businessweek

A Crypto Billionaire’s Path From Pariah to Trump Moneyman The Tech Fashion Darling Accused of Swindling Investors Out of $300 Million MrBeast on His Quest to Turn YouTube Fame Into an Entertainment Empire Why Javier Milei’s Chainsaw Suddenly Jammed The UN Shows How Trump Is Pretty Much on His Own Now

©2025 Bloomberg L.P.

View Comments