UBS will lease an entire 14-story tower in West Kowloon as its new office - almost double the space it initially planned - in a vote of confidence for the city.
The Swiss lender will now take 460,000 square feet of space in the tower, which is being built by Sun Hung Kai Properties (0016) near the High Speed Rail West Kowloon Station. That's 84 percent more than the 250,000 sq ft of space UBS announced it would rent in 2022.
Revealing the news at the topping-out ceremony for the tower, chief executive Sergio Ermotti said the move showcases UBS's commitment to Hong Kong's business.
The new office is expected to be ready in 2026, and UBS will move out of the iconic International Finance Centre in the central financial district and consolidate the bank's staff in one place.
The bank aims to make use of the office's location to take advantage of the opportunities in the Greater Bay Area, said Amy Lo, who heads UBS's business in Hong Kong.
CBRE data shows that Hong Kong's vacancy rate climbed to an unprecedented 16.4 percent at the end of 2023, and SHKP said it will take a while for office vacancy rates to decline.
Sergio Ermotti, left, and SHKP chairman Raymond Kwok at the topping-out ceremony. Bloomberg
