Citic Tower II - The Case Centre

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Case

Reference no. 201-047-1

Subject category: Finance, Accounting and Control

Authors: Lucy Fung (HKU Business School, The University of Hong Kong); Mandy Ho (EHL Hospitality Business School, HES-SO, University of Applied Sciences and Arts Western Switzerland); Frederik Pretorius (HKU Business School, The University of Hong Kong)

Published by: Asia Case Research Centre, The University of Hong Kong

Published in: 2001

Length: 27 pages

Topics: Finance; Real estate; Capital budgeting

Share a link: https://casecent.re/p/21870

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Abstract

This case deals with a major corporate investment decision facing CITIC Pacific Ltd. The company had to decide whether or not to purchase newly reclaimed land at the waterfront of Victoria Harbour, Hong Kong, and develop a Grade A office building for investment purposes. The aim of this case is to expose students to capital budget decision-making in a major corporation active in the Hong Kong commercial real estate sector, in light of a recent change in corporate strategy but without immediate constraints on its ability to finance present opportunities. The case ''Citic Tower II: The Real Option'' (102-033-1) is a logical progression from this case.

Location:

Hong Kong

Other setting(s):

1997-2000