Chinese technology giant Alibaba Group Holding Ltd. is near a deal to buy the top 13 floors of One Causeway Bay, an upscale Hong Kong office tower. The deal is reportedly worth $900 million, according to the Hong Kong Economic Times.If consummated, the transaction would mark one of the largest property plays by a technology company into Hong Kong’s high-end real estate market in recent years. It also underscores how Alibaba is positioning itself for long-term expansion within the city even as its commercial property market grapples with high vacancy and falling rents.This comes as the Chinese e-commerce leader plans to raise $3.2 billion through the sale of a zero-coupon convertible bond to fund international expansion and enhance its cloud computing capabilities. As recently reported by Cryptopolitan, this is now the most significant convertible bond deal of the year, smashing DoorDash’s $2.75 billion deal from May.Around 80% of the funds will be allocated to expand data centers, enhance technology, and enhance cloud services to meet increasing demand. The remaining funds are expected to be allocated to enhancing the firm’s e-commerce operations and strengthening its market presence.Alibaba expands into Hong Kong real estateAlibaba already leases 10 floors at Times Square, one of the most prominent towers in Causeway Bay. Its lease there is sealed until 2028. However, renting has its limits, as the company relies on lease renewals and faces higher rental costs. Such a purchase of floors at One Causeway Bay would transform Alibaba from a tenant to an owner, and provide it with long-term stability in the city.The timing of this purchase is strategic, as Hong Kong’s office market is currently in a slump. Vacancy rates have soared to nearly 17%, nearing a historical peak. Multinational firms have been cutting back or deferring expansions, and many landlords are struggling to fill their available space. That has caused valuations to fall, and prices for prime property have slumped. For companies like Alibaba, with cash to spend, the slowdown presented an opportunity to acquire prime real estate at a discount.Analysts say Alibaba is capitalizing on this opportunity. Ownership would also enable the company to manage costs more effectively in the long term and mitigate the risks associated with rental increases. It would also give the group the ability to customize its office design and control it, ensuring the space is right for changing business needs, from traditional office use to innovation labs or co-working hubs for its affiliates.One Causeway Bay is an appealing property in its own right. Constructed by Mandarin Oriental Hotel Group, the 29-story tower combines office and retail space in one of Hong Kong’s most hectic commercial districts. Alibaba looks to secure its footprintAlibaba has been increasing its presence in Hong Kong over the last several years. Its fintech arm, Ant Group, has also been expanding its operations in the city, as both enterprises seek growth beyond mainland China.The prospective purchase is viewed as plain evidence of long-term commitment. Purchases of the building would create a steadying base over an uncertain time as the group continues to advance its international business strategy. It would also deepen its foothold in one of Asia’s biggest financial hubs.If successful, the 900 million dollar deal would represent a bright spot in a listless property market that has left many investors wary. It would signal that elite tech companies are still willing to take big steps despite the city’s economic setbacks.Alibaba and the sellers have not publicly acknowledged the deal yet, either. Negotiations are continuing, and industry watchers anticipate that details could emerge in the coming weeks. Get up to $30,050 in trading rewards when you join Bybit today