May. 16, 2012 (China Knowledge) - Agricultural Bank of China Ltd or ABC<601288
>, one of China's Big Four banks, has purchased an office building in Hong Kong
for HK$4.88 billion or about US$629 million as its regional headquarters, said Colliers International, the advisor of the purchase.
The 28-story building, located on 50 Connaught Road with a gross floor area of 175,000 square feet, was bought from Apollo Global Real Estate and an investment unit of National Electronics.
Colliers added ABC acquired the office building at a consideration of HK$27,888 per square foot. Based on the property's latest rent of HK$135 per square foot per month, the purchase would bring the lender an annual investment yield of about 4%, higher than the current average yield of 3.0% to 3.5% for Grade-A office buildings.
This is the first time a China's Big-Four bank has a direct 100% ownership of its office building in Hong Kong.
Last year, ABC earned RMB 121.9 billion in net profit, up 29% from a year earlier, boosted by strong fee and commission incomes.