CityU joins ranks of schools snapping up Hong Kong offices with Festival Walk buy



City University of Hong Kong has bought an office property in Kowloon for HK$1.96 billion (US$252 million), joining a growing list of educational institutions buying office assets amid depressed prices as the city’s office market shows early signs of stabilising.

CityU Limited, a wholly owned subsidiary of the university, acquired the low-rise office block at Festival Walk in Kowloon Tong from Singapore-based Mapletree Pan Asia Commercial Trust. The agreement was signed on December 10, and the sale was completed on Wednesday, according to Land Registry records.

The four-storey block – part of the Festival Walk complex connected to the Kowloon Tong MTR station and directly opposite the CityU campus – offers about 214,000 sq ft of space and is more than 90 per cent occupied.

The deal reflects a broader shift in Hong Kong’s office market, where government-related bodies and universities are increasingly buying rather than leasing space. Persistent oversupply and softer rents have pushed prices lower, creating opportunities for long-term, cash-backed institutions less sensitive to short-term market cycles.

Mapletree, wholly owned by Singapore’s sovereign wealth fund Temasek, said in a statement last month that the offloading aimed to optimise its portfolio in a dull Greater China office market and reduce its debt. The trust fund retained full ownership and operation of the seven-storey Festival Walk shopping centre and parking levels.

City University did not respond to a request for comment.

The trend of office purchases by educational institutions has gained momentum over the past two years. Last month, Hang Seng University of Hong Kong acquired 16 office units and car parking spaces at Metropole Square in Sha Tin for HK$90 million, with the deal set to close this month. In 2024, Hong Kong Metropolitan University bought the 15-storey One HarbourGate East Tower in Hung Hom for HK$2.6 billion.
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