CITIC Tower II: The Real Option Harvard Case Solution & Analysis

Citic Pacific Ltd (CPL) had to decide whether to buy the newly reclaimed land on the waterfront of Victoria Harbour, Hong Kong, as well as to develop a class of office building for investment purposes. The decision was to be made at the approach of the cyclic high point in the market class office space in the second half of 2000. CPL knew that the commercial property market has been extremely cyclical and that very few companies operating on the market of the time were able to rent bikes and successful investment strategy. If Citic Tower II appeared on the market at the right time, it can be much more promising than it appeared in the middle of 2000. No one knows when the "right time" is, of course, but the possibility to postpone the decision on the development, while retaining control over the site can gain time and opportunity to save what can be a very good opportunity. In other words, CPL was appreciate its features. "Hide

citic tower ii case solution

citic tower ii case solution

by Frederik Pretorius, Maria Ho Source: University of Hong Kong, 7 pages. Publication Date: July 16, 2002. Prod. #: HKU199-PDF-ENG

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CITIC Tower II: The Real Option

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