Here's why Stanhope House was sold at a 43% discount

Not about being there for over 20 years.

According to Colliers International, located in Island East, Stanhope House enjoys great connectivity to Kowloon East and other business districts on Hong Kong Island by virtue of its direct access to transportation links such as MTR lines, Island Eastern Corridor and Eastern Harbour Crossing.

Here's more from Colliers International:

Despite the fact that the development has been built for more than 20 years, the whole premises is in well maintained condition which attracts medium-sized tenants ranging from financial services to trading.

In October 2012, AIA acquired the entire 21-storey development for a total consideration of HK$2,398 million (or an average price of HK$8,004 per sq ft) with an intention to keep the premises for both owner occupation and long term investment.

Due to limited new supply of office developments on Hong Kong Island and growing occupational demand, end-users have been looking for whole-block developments for corporate consolidation at an lower rate than those in traditional core districts.

The Stanhope House transaction is the most recent illustration of the sustained occupational demand trend. With an inexpensive average unit rate, it was sold at a 43% discount to the overall average market price of a Grade A premises in Island East as the building is slightly away from Taikoo Place - the well-established office cluster managed by Swire in Quarry Bay.

The buyer (AIA) is also flexible to offer the remaining space for lease at an estimated market rent of HK$25 per sq ft per month, thus generating a premium yield of 3.7% based on the transacted price of the development.