Swire Properties tops out latest office tower in Hong Kong’s new ‘eastern CBD’
Multinationals are moving out of Central Hong Kong in their droves in search of twice the spec, at half the cost
Swire Properties, the real estate giant, has topped out its latest office tower in Quarry Bay with over half the units pre-leased already to multinational corporations – very much in line with the growing trend of more foreign firms moving out of the city’s Central district.
One Taikoo Place is the first of two triple Grade A office towers in a HK$15 billion (US$1.54 billion) redevelopment project by Swire Properties, Hong Kong’s fifth-largest developer by market capitalisation.
Set to open in the third quarter of the year, it will cover half the towers’ combined total of two million square feet and cement the island’s eastern neighbourhood as a second, cheaper central business district (CBD) alternative to Central – traditionally the heartbeat of Hong Kong business.
“We saw a demand from Central-based tenants who wanted high spec accommodation, but at a lower price,” said Don Taylor, director offices, at Swire Properties.
“The value proposition we are presenting is twice the spec, at half the cost. As the rent differentiation between Central and Taikoo Place widens, it becomes a compelling financial argument to relocate out of Central.”
Rents range from HK$50 to HK$70 per square foot, depending on size of occupation and floor level.