Manulife Buys HK Office Tower

Manulife (International) Limited, a member of the Manulife group of companies, announced that it had completed the purchase of a new 21-story office building in Hong Kong's new Central Business District. The tower, dubbed the Manulife Tower, was developed by Wheelock Properties, the subsidiary of Wheelock and Company Limited of Hong Kong. Wheelock and Manulife signed a sale-and-purchase agreement in 2013 for HK$4.5 billion, which marked the largest single office tower purchase in Kowloon.

"We are very pleased to see the completion of the purchase of Manulife Tower, which is our brand new flagship building in Hong Kong," said Roy Gori, President and CEO at Manulife Asia. "Nestled in the heart of Hong Kong's new premier Central Business District, our investment in Manulife Tower is a testament to our long-term commitment to the region and Hong Kong where our regional hub is based. Manulife Tower also provides us the flexibility to meet the needs of our business growth in Asia."

Located at 83 Hoi Bun Road, Kowloon East, the Manulife Tower will serve as the office of some of the company's regional and Hong Kong operations, and also the majority of its agency offices. Other Manulife offices continue to be located in Causeway Bay and Kwun Tong. Manulife is expected to take occupancy of Manulife Tower by end of 2015.

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John Hancock Buys One South Wacker for $344M

John Hancock, the U.S. division of Manulife Financial Corporation, announced the purchase of One South Wacker in Chicago's Central Business District's West Loop, a $344 million acquisition. The 40 story Class A office building was sold by Norfolk, VA-based Harbor Group International, which originally purchased the tower in December 2012 for $221 million, and implemented complete property renovations in 2014. Terms of the deal and representation were not disclosed.

"One South Wacker represents the type of high quality assets we acquire in key gateway markets where we do business," said Kevin Adolphe, President & Chief Executive Officer of Manulife Real Estate, which operates as John Hancock Real Estate in the U.S. "The acquisition is consistent with our strategy to seek out complementary, core office towers that can provide long term value for our global portfolio. We are proud to strengthen our commitment to the Chicago market with the acquisition of One South Wacker." Other Chicago properties owned or managed by John Hancock include 55 West Monroe, 191 N. Wacker, 200 S. Wacker and 150 N. Michigan Avenue.

One South Wacker was originally constructed in 1982 and designed by Murphy/Jahn, Inc. Architects (now JAHN), inspired by Gothic cathedrals with buttress-like setbacks and arch patterns in black glass. The building's central section has three small private atriums at the top of each setback, each encased with pink glass. The lobby connects Wacker Drive and Madison Street, and is unusual for its dark black color. Helmut Jahn's original design was altered in a remodeling project around 2000. The property was 86% leased at the time of sale to unlisted tenants. Anecdotally, the tower was also featured in the Daft Punk music video "Burnin" - a loose take on the film "Towering Inferno".

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Citigroup Buys $700M Hong Kong HQ

In what's been reported as the largest single-block office purchase in Hong Kong, Citigroup has committed to pay HK$5.425 billion (or $700 million US) for a twenty-one story building to be completed next year. Wheelock Properties developed and sold One Bay East at 83 Hoi Bun Road, Kowloon East to Citi; full terms of the deal have not yet been disclosed. CBRE Group Inc. acted as adviser on the sale. The purchase price marks a 20% appreciation as compared to the price of the property's twin West Tower, adjacent to the East Tower, which was sold for HK$4.5 billion to Canada-based insurer Manulife last April, according to a report from The Standard.

"We are delighted that two leading global financial corporations have chosen One Bay East as the strategic base for their business operations. The significant and long term investments by top class multinationals show their continual deep confidence in Hong Kong," said Steward Leung, Chairman of Wheelock Properties.

"Our decision to purchase the East Tower of One Bay East underlines our belief and confidence in Hong Kong's continued growth as a leading global financial center and hub for some of our core regional businesses," Stephen Bird, chief executive officer for Citi in Asia Pacific said in a statement.

The 512,000 square foot tower will serve as the Asian headquarters building for Citi in the Asian financial hub. The building is about 40 minutes via public transportation from the main business district in Kowloon, Hong Kong, known as Central, where Citibank Plaza and many of the bank's executives are now located.

For more news and information visit Blumberg Capital Partners.