Hong Kong Exchanges and Clearing (0388) on Thursday said it has entered into an agreement with Hongkong Land to purchase multiple floors at One Exchange Square for HK$6.3 billion to establish its permanent headquarters.
HKEX is purchasing the top nine office floors in One Exchange Square from Hongkong Land, as well as additional space adjacent to HKEX Connect Hall at Levels 1 and 2 of the building, for a total investment of HK$6.3 billion that will be funded via internal resources, the company said in its website.
The exchange will also sign new long-term leases for several floors in Two Exchange Square that are currently occupied by HKEX, with the hybrid buy-and-rent model providing more flexibility and resilience against different property cycles.
As part of the agreement, Hongkong Land will invest HK$400 million to modernize the public-facing areas of Exchange Square, in particular with the addition of HKEX-branded signage and design themes.
HKEX chairman Carlson Tong Ka-shing said the strategic investment marks a new chapter for the exchange at Exchange Square, as it establishes a permanent home in this iconic development.
Completed in 1985, Exchange Square was purpose built by Hongkong Land as a high-rise commercial development to specifically house the trading hall of Hong Kong’s unified stock exchange. After over 30 years, the trading hall in 2018 was transformed into HKEX Connect Hall, which now plays host to the iconic Gong-strike listing ceremonies among other financial community events, while HKEX in recent years also began leasing offices in the Exchange Square towers.
The modernization works in Exchange Square will include establishing a dedicated reception lobby for HKEX that is connected directly to Connect Hall, among other enhancements.
STAFF REPORTER
