Jardine Matheson Holdings Ltd., controller of Hong Kong’s biggest commercial landlord in the Central business district, is exploring the sale of two buildings in the area, according to people familiar with the matter.

Property agent Savills Plc has been distributing marketing material about Three Exchange Square and the nearby Forum on behalf of Jardine’s Hongkong Land Holdings Ltd., according to a brochure seen by Bloomberg.

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If sold, the transactions would mark a rare jettison of assets in Central for Jardine Matheson, whose assets span from Mandarin Oriental International Ltd. to supermarkets and infrastructure. Hong Kong’s office market is in a rare downturn, hurt by years of Covid lockdowns, multinational companies downsizing and a rise in supply.

The property agent approached investors with an asking price of HK$38,000 ($4,860) per square foot, one of the people said. The plans are preliminary and could be subject to change as no official sales process has been kicked off, the people said.

Three Exchange Square is approximately 430,802 square feet (40,000 square meters), while the Forum is 48,453 square feet, according to the brochure.

In 2021, Hongkong Land transferred the ownership of Three Exchange Square and the Forum to newly incorporated subsidiaries with its executives as directors, according to official documents. Jardine Matheson owns about 53% in Hongkong Land.

Hongkong Land said on Thursday it had no plans to sell any of its buildings in Central, reiterating the statement it said a day before when local newspaper Sing Tao reported that an unidentified agency was marketing the property for sale at HK$16 billion. Savills declined to comment.

Office values have declined about 35% as of the end of June from their peak in 2018, according to Colliers International Group Inc.

Companies are jumping on the rental slump to upgrade to bigger places, adding pressure to landlords who own assets that are older. Hongkong Land has several buildings more than 30 years old. Office rents are 30% lower than their peaks in 2019, according to Colliers.

--With assistance from Vinicy Chan and Shirley Zhao.

Author: Krystal Chia, Lorretta Chen and Shawna Kwan