The U.S. Consulate in Hong Kong has sold a property used as staff quarters through a public tender for HK$2.57 billion (US$331 million).
Hong Kong developer Hang Lung Properties confirmed the purchase of the luxury property. Hang Lung Properties called it a vote of confidence in the future of Hong Kong. The company says it plans to invest about HK$4 billion to redevelop the site into a group of luxury detached residences, which is expected to be completed by 2024.
The property, located in Shouson Hill on the southern part of Hong Kong Island, has been held by the U.S. government for more than 70 years.
Reuters quoted price analysts as saying that the sale price was at the lower end of the market’s expected range.
Relations between the United States and China are currently strained, with China having imposed national security laws in Hong Kong and the United States announcing the removal of Hong Kong’s special treatment.
An unnamed analyst quoted by Reuters said he had heard that there were few bidders because the site was too sensitive and there was economic uncertainty about luxury property sales.
A representative of the U.S. consulate told Reuters that the sale was a business decision and part of the U.S. government’s global review of all properties owned by the State Department’s Bureau of Overseas Building Operations.
He said, “This will not affect our presence, personnel or operations in any way.” He added that the U.S. side received multiple offers and that the deal will be completed by the end of the year.
The U.S. consulate opened the bidding process in early June, two weeks before Beijing bypassed Hong Kong’s Legislative Council and introduced a Hong Kong version of its national security law. The law went into effect on June 30.
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