Summary:
- Centaline Investment, the investment arm of a leading Hong Kong property agency, acquired the 494-room Regal Oriental Hotel in Kowloon City from HKEX-listed Regal REIT for HK$1.5 billion, aiming to convert it into student housing amid rising demand and plans to invest up to HK$2 billion in the project.
- The acquisition supports Centaline’s CampusOne Communities platform, targeting 6,000 student beds within two to three years, with the Regal Oriental Hotel located near major universities and scheduled for partial opening in September 2025.
- Regal REIT sold the asset to reduce its gearing ratio and interest expenses after reporting a HK$508 million loss in H1 2025, while the transaction proceeds will be used to repay bank borrowings and support working capital.
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