Champion Real Estate Investment Trust (2778) has to achieve a 30 percent to 40 percent premium from the estimated value of its Langham Place office tower in Kowloon before it will consider disposing of the property, a property analyst said.
Raymond Lee Wai-man, chief executive for Greater China at Savills, said the indicative price for Langham Place is about HK$24.5 billion, which translates to about HK$35,000 per square foot.
He said the property is the second highest commercial building in Kowloon and is a rare grade-A skyscraper that is available for sale.
Prospective buyers include mainland state-owned enterprises and insurance companies.
Two to three mainland companies have already expressed interest in acquiring the property, Lee said.
Savills has been appointed as principal agent for the global tender sale of the office tower.
He said the sales timetable will depend on indications of interest from buyers.
The closing date for the tender, to be determined next month, may be set sometime in September or October this year.
Investors with a "collector's mindset" are likely to show interest in Langham Place, Lee said.
The office block currently commands monthly rents of about HK$50 to HK$70 per sq ft.
Champion REIT owns all but four floors of the 59-storey office tower, equivalent to office premises of about 700,000 sq ft.
Champion REIT is a subsidiary of Great Eagle Holdings (0041), a conglomerate controlled by the Lo family, whose members are currently engaged in various issues, including a succession tussle.
Lee declined to respond to the ongoing family squabble, saying Savills was employed by Champion REIT for the tender of the Langham Place office tower, not by Great Eagle.
Meanwhile, Lai Sun Development (0488) will launch for sale on Saturday 22 flats at its Alto Residence project in Tseung Kwan O.
It offered earlier 61 Alto Residence flats at an average price per square foot of about HK$28,800.
It also launched earlier 58 flats, with sizes from 377 sq ft to 1,874 sq ft, and three houses with sizes from 2,222 sq ft to 2,244 sq ft.
Construction of Alto Residence was completed in June 2016 and it will provide a total of 605 units. Empire Group Holdings is Lai Sun's joint venture partner in the project.
Team Worldwide Limited will launch within this month 136 apartments in the first batch of sale at its Edition 178 project in Kwai Chung.
Edition 178 is a single-tower project and provides 136 apartments, comprising studios to two-bedroom homes, with sizes ranging from 222 sq ft to 398 sq ft.
This project is located at 178 Hing Fong Road, and construction of the project is expected to be completed in November next year.
Team Worldwide Limited, a subsidiary of Global Convention Limited, has acquired the Kwai Chung site in 2015 for HK$372.1 million, or about HK$6,700 per sq ft.