CITIC Tower II: The Real Option

Case Solution

Frederik Pretorius, Mary Ho
University of Hong Kong ()

Citic Pacific Ltd. (CPL) had to decide whether to buy reclaimed land on the Victoria Harbor waterfront, Hong Kong, and develop a Category A office building for investment. The decision should be made at a close cyclical level in the Grade A office market in the second half of 2000. CPL knew that the commercial real estate market is extremely cyclical and that very few companies in the market have been able to successfully time the business cycles. rental and investment strategies. If the Citic Tower II hits the market at the right time, it could be much more promising than in the mid-2000s. No one knows when the “right time” is, of course, but the ability to postpone the development decision while still being in control of the site could save time and the option of holding on to what can be a very good opportunity. In other words, CPL had to evaluate its options.

We don‘t have the case solution, but we pay up to $50 for yours!

  • Set a reminder to receive an email after your university‘s case study deadline.
  • Upload your case study solution. We will review it for quality.
  • Get your money via PayPal or to your bank account.