Guangdong Land arm slashes office space

State-backed Guangdong Land (0124) has slashed the office space of a subsidiary in one of its major commercial towers by more than half for the next two years amid shrinking property development demand.

Guangdong Yuehai Land will lease the 44th floor of the Teem Tower in Guangzhou in a new agreement for a term commencing January 18 to December 31 next year, after renting both the 44th and 45th floors of the tower as well as unit 05-1 on the 43rd floor in its previous agreement, which expired on December 31.

The company said it is forgoing the space amid the "group's current reduced demand for office space and in order to save cost for leasing office space."

Guangdong Land's net loss soared by more than 180 percent year-on-year to HK$190.72 million in the first nine months of 2024 amid prolonged downturn in China's property market.

June Chen