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  • Citigroup
Citigroup
Finding and negotiating the acquisition of a new headquarters for Citigroup in Hong Kong | 2015
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Citigroup Case Study Image

Key Information

Featured
Related

Client

Citigroup                                                                                                                                                                                                                     
Featured
Related

Location

One Bay East, East Tower, Kowloon                                                                                                                                                                       
Featured
Related

Topline

$700 million acquisition, 512,000 square-feet, 25% reduction in occupancy footprint, 30% reduction in annual operating costs

The Challenge



In 2013, Citigroup began looking for a comprehensive, cost-effective real estate solution in Hong Kong, a market that accounts for more than $1 billion in annual revenue. The bank sought to consolidate its portfolio of multiple sites and the majority of its nearly 5,000 employees under one roof. The supply of suitable buildings was scarce, and few corporate occupiers had purchased assets in Hong Kong, making the project more challenging. Citi also faced office lease expirations.



The Solution



Citi appointed CBRE as the sole advisor on the planning and execution of the bank’s long-term strategy. In June 2014, Citi acquired the East Tower of One Bay East, a 21-story, 512,000-square-foot office tower, from Wheelock Properties for $700 million. The transaction set a benchmark in the market as the largest single office purchase ever undertaken in Hong Kong and a milestone in Citi’s 112-year history there.

CBRE worked closely with Citi’s internal financing and accounting teams to navigate what was unchartered territory for the bank, providing regular and rapid market updates. Citi also faced fierce competition from two other prospective buyers. Despite this, the deal closed in 60 days.

The CBRE deal team included Hong Kong Office Services, Global Workplace Solutions, Research, and Valuation & Advisory Services. After the acquisition, CBRE’s Project Management team was appointed to oversee and manage space planning and buildout.  

Located in the heart of the Kowloon financial district with a panoramic view of Victoria Harbor, the new offices will enable Citi to reduce its occupancy footprint by 25% and its annual operating costs by 30%. The move also allows Citi to support expansion plans and to provide staff with a world-class work environment.




Citi Image

Testimonials

Rhodri James Headshot

"By purchasing an office building for self-use, [Citigroup] will increase its ability to strategically plan its space requirements for the long term."

Rhodri James, Executive Director, Office Services
CBRE
$name

"Citi has enjoyed 112 years of success in Hong Kong. The purchase of the East Tower of One Bay East reinforces that commitment."

Wade Cruickshanks, Managing Director, APAC Region Head of Citi Realty Services
Citibank
Stephen Bird Headshot

"[This] purchase underlines our belief and confidence in Hong Kong as a leading global financial center and hub for some of our core regional businesses."

Stephen Bird, Chief Executive Officer
Citibank

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