Sunday, November 29, 2015   

HKMC 'to pay $90m' for lease at Two IFC

Sebastian Tong

Monday, April 07, 2003

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

leased out.

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

rental periods.

HKMA's promise to share conference room facilities with HKMC was also

said to be another incentive.

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