The Hong Kong Mortgage Corporation (HKMC) is renting 24,000 square
feet of office space from the Hong Kong Monetary Authority (HKMA) in
Two International Finance Centre (Two IFC) for an initial rate of
HK$30 psf, a source said.
HKMC could pay as much as HK$90 million for its 12-year lease.
Under the lease agreement, the firm will enjoy a rent-free period of
18 months during the first six years. The rental rate will be reviewed
after the six years and HKMC will subsequently enjoy a rent-free
period of six months every three years.
HKMA bought the 55th, 56th and the 77th to 88th floors of the building
for HK$3.7 billion two years ago.
Its purchase consists of 340,000 sq ft of gross floor area but the de
facto central bank only requires 270,000 sq ft for its permanent
offices. The remaining 70,000 sq ft owned by HKMA is expected to be
Although an HKMA spokesman confirmed that the regulator had plans to
lease the unused floor space, he declined to say how much space would
be unused and who the potential tenants are.
Market sources said rail operator MTR Corp, the joint-developer and
owner of Two IFC, also approached HKMA in the territory's tallest
skyscraper but offered different terms.
It asked for HK$35 per sq ft for the first five years with a rent-free
period of 18 months.
Currently situated in The Landmark, HKMC now pays HK$38 per sq ft for
two floors in Gloucester Tower totalling 20,000 sq ft. Its lease runs
out next year.
HKMC's present landlord, Hongkong Land, reportedly offered a lowered
rate of HK$25 per sq ft for the first five years for the new lease but
no rent-free period.
Although the Hongkong Land offer is cheaper purely based on monthly
rental rates, HKMC is said to have taken up HKMA's offer because of
possible redevelopment plans at The Landmark and the lure of free
HKMA's promise to share conference room facilities with HKMC was also
said to be another incentive.
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