Bermudian-incorporated Mandarin Oriental International Ltd has agreed to sell 13 floors of its new One Causeway Bay development in Hong Kong to Alibaba Group and Ant Group for about $925 million, according to a filing with the London Stock Exchange.

The sale covers the top 13 floors (Levels 21—35) of the 301,555-square-foot property, along with rooftop signage and 50 parking spaces, which will become the new Hong Kong headquarters for the two Chinese technology companies.

Mandarin Oriental said in the filing that the sale is “a resounding expression of confidence in Hong Kong’s attractiveness as a global gateway city” and forms part of its “asset-light strategy”, aimed at focusing on hotel management and returning capital to shareholders.

The company noted that the transaction, executed through its subsidiary One Causeway Bay Ltd, follows “preliminary agreements for sale and purchase” signed on October 17. The building carries platinum-level sustainability certifications under Hong Kong’s Building Environmental Assessment Method Plus standard and the international Leadership in Energy and Environmental Design and Well standards.

According to Reuters, the deal is among the largest office property sales in Hong Kong since 2021, signalling renewed investor confidence after several years of weak demand.

The transaction comes as Mandarin Oriental’s parent group, Jardine Matheson Holdings Ltd, moves to acquire the remaining 11.96 per cent of the company it does not already own, in a $4.2 billion take-private offer. Jardine said the buyout would “simplify its structure” and provide flexibility for future growth.

Mandarin Oriental, which is registered in Bermuda and listed on the Bermuda Stock Exchange as well as in London and Singapore, is part of a group of globally-recognised consumer brands domiciled on the island.

According to Hotels Magazine, the sale also reflects a broader shift in the hospitality sector towards “capital recycling”, with hotel operators divesting owned real estate to focus on brand and management expansion, a trend seen across Asia and Europe.