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

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.