'Beijing Okays Sale Of US Consulate-owned Property'

Hang Lung Properties said on Thursday that Beijing has given it the green light to complete its purchase of the US consulate's staff compound on Shouson Hill.

The HK$2.6 billion purchase of 37 Shouson Hill Road was agreed in September, but was effectively blocked before its December deadline when Beijing ruled that the transaction was not an ordinary commercial property deal.

The central government said Washington should make a written application two months before the sale.

The developer said it was glad that the US side had now completed its obligations.

A spokesman for the US consulate here said the US State Department cannot comment on the specific terms of ongoing contractual transactions.

The sale of the luxury property, which consists of six low-density residential buildings over nearly 95,000 square feet overlooking Deep Water Bay, came as Washington and Beijing sparred over trade and Hong Kong.

The US consulate had said it was a business decision and some of the proceeds from the sale will be reinvested into other properties that Washington owns in Hong Kong.