Acquisition of office units in Sha Tin’s Metropole Square follows Metropolitan University’s US$334 million purchase of Hung Hom property
Hong Kong’s Hang Seng University has acquired office units in a commercial building in the New Territories for HK$90 million (US$11.6 million), making it the latest school to purchase real estate amid a government push to turn the city into a global education hub.
The acquisition covers 16 office units measuring 19,139 sq ft on the 11th floor of Metropole Square in Sha Tin, together with four car parking spaces. The seller was listed company Alco Holdings, which manufactures and sells consumer electronic products in the Asia-Pacific region, according to a filing with the Hong Kong stock exchange on Wednesday night.
The premises currently serve as Alco’s office. The company marketed laptops under the Avita and Nexstgo brands, tablets under RCA and e-bikes under the Biomega label.
The purchase price was agreed following a valuation in October that estimated the property’s worth at about HK$88.68 million. The deal was expected to be completed in January, Alco said.
“The net proceeds will be used to repay the group’s bank borrowings and financial guarantees,” the company said. “The property is one of the pledged assets and the sale will allow the company to fully settle bank loans of HK$47.5 million, with the remaining balance applied to financial guarantees.”
Alco said the sale “represents a good opportunity” for the company to realise the value of its property at a reasonable price. It added that it would consider leasing another property at a location “that is more cost-effective to serve as its office”.
A special general meeting has been scheduled for December 31 for shareholder approval of the sale.
Universities and schools have been among the most active buyers of property in the city after years of falling asset prices.
In November last year, Hong Kong Metropolitan University paid HK$2.6 billion for One HarbourGate East Tower in Hung Hom. The 15-storey office building had been seized by creditors from the cash-strapped Cheung Kei Group.
The expansion of the education sector has been underpinned by government efforts to attract more international students following the launch of the “Study in Hong Kong” initiative unveiled by Chief Executive John Lee Ka-chiu in his 2024 policy address.
In his latest policy address in September, Lee announced a trial scheme to allow schools under the Direct Subsidy Scheme to seek an increase in the number and size of classes and admit more self-financing non-local pupils on student visas.
