Innovation platform buys Hong Kong office tower as state-linked buyers seek bargains

Analysts say purchase adds to signs that state-backed buyers from mainland are taking advantage of lower prices for commercial properties The acquisition of a Hong Kong office tower by an innovation platform backed by Ningbo’s city government has reinforced analysts’ expectations that mainland government-linked institutions could play a bigger role in the city’s commercial property market, where prices remain depressed. Land Registry records show Yonggang Science and Technology Innovation Centre reached an agreement with receivers on June 25 to buy the Konnect office building in Wan Chai for HK$800 million (US$102 million) – about 11 per cent below the original asking price. The innovation platform was launched in June to support cross-border technology collaboration between Hong Kong and Ningbo. It said in a statement issued at the time that it aimed to establish matching investment funds in Hong Kong and Ningbo to support technology ventures under an “offshore incubation, onshore acceleration” model. The platform is operated by Ning Shing (Holdings), a wholly state-owned enterprise established in Hong Kong by the city government of Ningbo, in Zhejiang province, according to the company’s website.

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