HONG KONG, Aug. 9, 2023 /PRNewswire/ -- DL Holdings Group Limited ("DL Holdings" or the "Company"; Stock Code: 1709.HK) recently announced its plan to invest nearly HKD 300 million to acquire the top five floors of the soon-to-be-completed "92 Wellington Street" premier new integrated commercial tower, along with the entire rooftop area and naming rights of the building.
The "92 Wellington Street" project is situated at 92-96 Wellington Street in the core commercial district of Central, Hong Kong. It is a mere 5-minute walk from the International Finance Centre (IFC), a 7-minute stroll from Landmark, a 6-minute walk from Central MTR station, and just 4 minutes away from Lan Kwai Fong. This prime location places it at the absolute heart of Hong Kong Island's commercial and retail hub. DL Holdings intends to acquire the top floors, spanning from the 21st to the 26th, and includes a spacious rooftop offering panoramic views of Victoria Harbor. The project is jointly held by Capital Strategic Real Estate (497.HK) and a Canadian retirement fund, with Capital Strategic serving as the developer and the property being managed comprehensively by leading international real estate firm Cushman & Wakefield.
DL Holdings Group's recent acquisition involves purchasing partial floor ownership and securing the naming rights of the building, which will be named "DL Tower." This marks the group's first acquisition of commercial real estate in Hong Kong since its listing. Alongside the investment in the ultra-luxurious top-tier residential project, ONE Carmel, in Pebble Beach, California, USA, the global real estate division's expansion is gaining momentum.
DL Holdings Group Chairman, Andy Chen, stated, "The continuous interest rate hikes by the Federal Reserve have led to global liquidity tightening, resulting in asset price declines worldwide, Hong Kong included. However, this also presents a prime opportunity. Hong Kong's commercial property prices have already dropped by 26% from their peak. As an asset management company, we cannot overlook such a chance for investing in global real estate."
According to the 2023 Hong Kong Property Report by the Rating and Valuation Department, over 350,000 square meters of privately-owned office space was completed in 2022, with 97% of it located in non-core areas. However, the supply of new Grade A office space in the core areas of Hong Kong Island's Central and Western District will continue to decrease in 2023 and 2024. The bulk of new supply in 2024 will be concentrated in Kwun Tong, Central and Western District, and Wan Chai, with Central District having limited additions such as Phase II of Cheung Kong Center, The Henderson, and DL Tower. Simultaneously, the completion of commercial buildings in 2024 is expected to significantly decrease to 76,200 square meters (2023: 146,500 square meters), primarily concentrated in Wan Chai and Kowloon City, making new commercial towers in Central even scarcer.
Andy Chen emphasized, "The principles of real estate investment are centered around prime locations and their inherent scarcity value, both of which will be fully realized in this project. Central district serves as Hong Kong's super hub for finance and consumption, equivalent to Wall Street in the United States. From both a geographical standpoint and an overall investment perspective, it holds distinct and undeniable advantages. The naming of 'DL Tower' signifies our confidence in the stable growth of Hong Kong's economy and its role as an international financial center, particularly as the world's second-largest wealth management hub. This move will contribute to enhancing DL's brand image within our core asset management platform, centered around Multi Family Office, as well as further solidify our commitment to long-term growth alongside our clients."
As mainland China's economy reboots post the pandemic, consumption and financial activities in Hong Kong are rapidly recovering. The current U.S. interest rate cycle is nearing its end, with expectations of declining borrowing costs and a return of premium asset prices to more normalized levels, offering room for appreciation. DL Holdings plans to relocate its headquarters to the new premises, utilizing the acquired floors for the group's internal use.
Chen added, "DL Tower will stand apart from conventional Grade A office buildings and commercial towers. This new landmark will epitomize the emerging trends in Central, blending office, leisure, environmental consciousness, and lifestyle into one, better catering to the working and living preferences of the younger generation, infusing new vitality into the traditional Central financial and commercial district. New York and London have already begun transforming, and I believe Hong Kong should not only keep pace but even lead the trends in Asia."
DL Holdings has experienced rapid development in recent years, having successively signed strategic cooperation agreements with Soochow Securities (Hong Kong), fully acquired family office operations, collaborated extensively with Invest Hong Kong, hosted the "Victoria Harbor Night Talks" financial dialogue, and sponsored the "DL Bus" shuttling through the core of Hong Kong Island, among a series of impactful events. Its influence and industry leadership have been rapidly expanding.
In addition, DL Holdings' investment in the premier North American real estate community, "ONE Carmel," has entered the construction phase, with the first phase comprising 36 luxurious villas witnessing unprecedented demand. This acquisition of a new integrated commercial tower in Central not only marks DL Holdings' inaugural venture into property investment in Hong Kong but also reflects its robust confidence in future business development and profit prospects.
About DL Holdings Group Limited (Stock Code: 1709.HK)
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on investment banking business, covering securities trading, financial consulting, multi-strategy investment fund management, investment research, financial loans and other financial services. Its subsidiary, DL Securities, holds SFC licenses for Type 1 (securities trading), Type 4 (advising on securities) and Type 6 (advising on corporate financing) regulated activities. The Group's subsidiary, DL Capital, mainly provides asset management services, holding SFC licenses for Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The Group's subsidiary, ONE Advisory, provides one-stop, bespoke and comprehensive global identity planning consulting services and solutions for high-net-worth individuals and families. The listed company also holds a Singapore RFMC fund license and a Cayman Islands SIBL fund license. The Group has established 18 limited partnership funds in Hong Kong, which mainly invest in private equity. The Group's subsidiary, Seazon Pacific, is committed to providing overall solutions for supply chain management.