Deposit box center opens in Tsuen Wan hotel

Far East Consortium International (0035) launched its first private vault in Tsuen Wan, with rent for a deposit box starting at HK$218 a month.

Far East Vault, the first privately owned vault of FEC, provides about 4,500 safe deposit boxes of six different sizes in the basement of the Silka Far East Hotel in Tsuen Wan.

The vault has security technology including facial recognition, palm vein scans, and real-time QR code verification.

"In recent years, the closure or downsizing of the safe deposit box business operated by major banks in Hong Kong has led to a shortage in the market," said Chris Hoong, managing director of FEC. "Customers generally have to wait for five to seven years for a safe deposit box."

Hoong estimates that vault businesses will turn profitable after leasing 40-50 percent of safe deposit boxes. He hopes FEV will reach that target within one year.

So far, the company is getting 20 inquiries a day.

"We intend to expand our vaults network in several quality locations in Hong Kong, with Tsuen Wan as our first vault," he said.

The earnings that a vault business with about 4,500 safe deposit boxes can generate basically amounts to that of a hotel with 100 rooms, Hoong said.