By Cheryl Arcibal

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Mandarin Oriental International said on Tuesday it was in discussions regarding the potential sale of a portion of its prime mixed-use building, One Causeway Bay, in one of Hong Kong’s top retail and business hubs.
The company, which operated 43 assets worldwide as of June, said negotiations were ongoing but “there can be no certainty that any sale will proceed, nor as to the terms on which such a sale might be made”.
“A further announcement will be made if and when appropriate,” it said.
A local media report identified e-commerce giant Alibaba Group Holding as a potential buyer for the top 13 floors of the property, which comprise 270,000 sq ft. Alibaba, which owns the Post, is reportedly considering the space for HK$7 billion (US$899 million).
Alibaba declined to comment on Tuesday.

If the deal goes through, it could be the most expensive commercial property acquisition in Hong Kong this year in terms of lump-sump payment, which translates to just under HK$26,000 per square foot.
In July, the Law Society of Hong Kong spent HK$345 million for 24,980 sq ft on the entire 26th floor of The Center on 99 Queen’s Road Central.
In April, Hong Kong Exchanges and Clearing agreed to pay HK$6.3 billion – more than HK$42,800 per square foot – for office floors and retail space in One Exchange Square and related assets from Hongkong Land in Central, in one of the city’s largest commercial property transactions in two years.
Those office purchases have brought some relief to Hong Kong’s beleaguered commercial property market, where total empty office space is estimated at 15 million sq ft – larger than all the space in prime office buildings in the main business district of Central, according to data compiled by CBRE.
One Causeway Bay is one of several new office and retail towers in the city scheduled for completion this year and next.
Before its redevelopment, the site was home to The Excelsior, an iconic waterfront hotel built on one of the first plots of land sold during the British colonial era. The four-star hotel closed at the end of March 2019 to make way for a new building.
Mandarin Oriental allocated a budget of US$650 million for the project. Hongkong Land, the largest commercial landlord in Central, serves as the project manager.
Meanwhile, development of Lee Garden Eight in Causeway Bay – a joint venture between Hysan, the district’s largest commercial landlord, and Chinachem Group – is set to finish next year and will feature over 1 million sq ft of office space.