Alibaba’s $900M Hong Kong Real Estate Move Amid $3.2B Convertible Bond Offering

Alibaba Group is negotiating to purchase the top 13 floors of One Causeway Bay for approximately $900 million, marking one of Hong Kong's largest tech-led property acquisitions in recent years. The deal signals long-term commitment to the city despite a struggling commercial real estate market with rising vacancies and declining rents.

Concurrently, the e-commerce giant plans to raise $3.2 billion through a zero-coupon convertible bond—the year's largest such offering, surpassing DoorDash's May transaction. About 80% of proceeds will fund data center expansion and cloud computing enhancements, with remaining capital strengthening e-commerce operations.

The property acquisition WOULD transition Alibaba from tenant to owner at Hong Kong's premier addresses, complementing its existing 10-floor lease at Times Square through 2028. Ownership provides cost stability against volatile leasing markets while supporting the company's Asia-Pacific infrastructure ambitions.