CityU Spends $252 Million on Empty Offices as Hong Kong Market Stumbles

City University of Hong Kong (CityU) has purchased a major office property for HK$1.96 billion (US$252 million). The deal is part of a new trend where universities are buying discounted office space. The university bought a low-rise office building in the Festival Walk complex in Kowloon Tong. The seller was Singapore's Mapletree Pan Asia Commercial Trust. Both parties signed the agreement on December 10. CityU joins other local educational institutions making similar investments. They are buying properties while prices are low. Hong Kong's office market has been weak but is now showing early signs of recovery. The purchase was made by CityU Limited, a wholly owned subsidiary of the university. The company facilitates the university's business and community projects.