New World to Build Hospitals in China with Tencent-Backed We Doctor

Hong Kong builder New World Development is partnering with Shanghai-based We Doctor Group

Leading today’s Hong Kong real estate news, mainland tech giants continue to build partnerships with the region’s biggest builders, with New World Developments new deal to build hospitals in the mainland and Hong Kong with Tencent-backed online healthcare service provider We Doctor giving us the latest example of this trend. Also in the headlines, grade B office space in the Central business district is pricier than ever, and the city’s chief executive says she’s trying to find practical solutions for the world’s most miserable housing market. All these stories and more await you, if you just keep reading.

New World Invests in Tencent-Backed Healthcare Firm

We Doctor Group, backed by Tencent Holdings, has lured new investors including AIA and New World Development in its latest bid to raise funds. The online healthcare services firm will partner with AIA to introduce insurance products and will cooperate with New World Development to develop hospitals in Hong Kong and in the mainland.

We Doctor’s chief strategy officer, Chen Hongzhe, said on Wednesday that We Doctor is now in the process of raising about $500 million ahead of its initial public offering. The fund-raising exercise will be completed this month. Chen also said the company intends to hold its IPO by the end of this year. Read more>>

Central Grade B Office Prices Hit Record High

Prices for grade B office buildings in the city rose by 2.1 percent last month, according to a report by Midland. Prices for grade B offices in Central saw an increase of 4.9 percent to HK$19,800 per square foot, a historical high.

Other districts also recorded growth in rental rates for those buildings with lower ceilings, fewer lifts, and more off the main path locations in the past month, with grade B buildings in Wan Chai experiencing a 2.6 percent climb to around HK$17,780 per square foot. However, the aggregate price growth in grade B buildings was 3.5 percent, below that of grade A offices. Read more>>

Carrie Lam Urges Realism on Housing Woes

Chief Executive Carrie Lam has urged the public to be realistic about Hong Kong’s housing problems, and said that banning mainland Chinese people from coming to the city was not a solution. At a question-and-answer session at the Legislative Council on Wednesday morning, Lam said that the housing issue was a focus of the administration.

However, she said that she was aware that she has yet to live up to the public’s expectations. Lam said that, with the work of the Development Bureau’s Task Force on Land Supply, she hopes Hongkongers will discuss the issues objectively and in a practical manner. Read more>>

Joseph Lau’s Ex Offloads Lippo Centre Units for HK$130M

Yvonne Lui Lai-kwan, a former girlfriend of Chinese Estates boss Joseph Lau, seems to be doing all right with her own real estate portfolio even after separating from her tycoon ex. Lui sold units 2610 and 2611 in the Lippo Centre Tower 2 office building in Admiralty for HK$130 million, or HK$39,000 per square foot, with the price per square foot breaking the previous record value for the building of HK$38,000.

Lui purchased the properties in 2016 for around HK$75.5 million, meaning that in two years, Lui realised a gain of HK$54.5 million on the assets. Read more>>

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