Swire office tower draws major tenants

Finance | Samantha Wong 2 Feb 2018

Swire Properties (1972) said more than half of the premises at One Taikoo Place, its newest triple Grade-A office tower in Quarry Bay, has already been pre-leased by major multinational corporations.

One Taikoo Place is a core component of Swire Properties' HK$15 billion Taikoo Place redevelopment project involving the area's further transformation into one of the city's major commercial hubs.

Swire said One Taikoo Place, which provides 1 million square feet of office premises, will have two anchor tenants:

Baker McKenzie, one of the world's largest international law firms, and Facebook, the world's best-known social network.

Currently based in Central, Baker McKenzie will relocate its entire operations in Hong Kong to One Taikoo Place, taking up five floors with a total area of 100,000 sq ft.

Facebook, which currently leases space at One Island East in Taikoo Place, will move to One Taikoo Place and take up 100,000 sq ft of office premises.

Other multinational companies from a wide range of sectors have also chosen One Taikoo Place to house their Hong Kong offices.

Among the most prominent tenants is communications conglomerate Interpublic Group, which includes global advertising networks CMG, FCB, Mediabrands, McCann and MullenLowe Group.

Other multinationals are insurance firm MetLife Asia Ltd and international law firm Simmons & Simmons.

Said Swire Properties director Don Taylor: "The growing number of high-profile corporations that have chosen to relocate from the city's traditional central business district and make this area their home is an endorsement of Taikoo Place as a location and a testament to its increasing status as one of the most desirable business addresses in the city."

Colliers said office rents in Island East recorded strong quarter-on-quarter increases, up 6.4 percent in the fourth quarter last year from the preceding quarter. It noted that office rents in Causeway Bay rose 2.4 percent during that period.

About 3.1 million sq ft of new office spaces will become available this year, about 50 percent higher than the annual average over the past two decades, Colliers said.

The new office towers will set higher benchmarks in districts where they are located as they provide better amenities and tenant profiles, it said.

"There won't be much pressures on rents on Hong Kong Island due to the fast take-up rate of new buildings. Rents in Kowloon East should stay firm, as low rents are attractive for relocation amid rising rents and low vacancy on Hong Kong Island," it said.

One whole office floor with a gross floor area of 14,500 sq ft at South Seas Centre in Tsim Sha Tsui was sold yesterday for HK$208 million, according to Land Registry data.



Search Archive

Advanced Search
February 2022
S M T W T F S

Today's Standard