BoCom buys Shanghai office building

It’s one of China's biggest office transactions.

Bank of Communications Company, China’s fifth largest bank, has agreed to buy for US$1.16 billion the Oriental Financial Center, a 31-storey office building currently being built in the Lujiazui financial district from owners Hutchison Whampoa Ltd. and affiliate Cheung Kong (Holdings). Hutchison Whampoa, a conglomerate controlled by Li Ka-shing, Asia's richest man, said it will record an unaudited gain of about HK$1.84 billion on the sale. Hutchison Whampoa and Cheung Kong are jointly building the 110,000 square meter office tower, which is slated for completion in mid-2014. BoCom’s current headquarters is located close to the new building. Property consultancy DTZ China Investment & Advisory Services brokered the off-market deal.