Colliers Moving Times - May 2014

HONG KONG EDITION

MAY 2014

Hong Kong Commercial Real Estate at Your Fingertips

KO

are w e now ?

UP

HONG KONG

W O LO

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SW I N G

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The China Factor Matters The best of the best

Market outlook

A comprehensive portfolio showcasing premier office leasing opportunities across Hong Kong

Kowloon East showing signs of rental decline

Oversupply in Kowloon East means price slide is unavoidable

32

h o n g ko n g ’ s

Heart Beat

Oversupply in Kowloon East means price slide is unavoidable

c over S tory

Hong Kong Island Sole Agency Appointments Special Listings

5 6 8

Hot Listings Recent Leasing Transactions

14

Kowloon Sole Agency Appointments Joint Sole Agency Appointment Hot Listings Recent Leasing Transactions

16 21 22 31

Key to Property icons Seaview

Mountain View

Garden View

Close to MTR Station

Raised Floor

Fitted-out

Parking

24-hour Air-conditioning

Close to Public Transport

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information.

Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). Š2014. All rights reserved.

central admiralty SHEUNG WAN wan chaI causeway bay island east

Hong Kong Island

Sole Agent

3 Lockhart Road > > > > > > >

Approx. area: 1,435 - 4,604 sq ft gross Landlord’s provisions: Full ceiling systems and carpet Clean, newly renovated premises Column-free design floorplate Close proximity to hotels Close to public transportation Availability: Immediate

wan chai

hong kong isl and

Typical floor plan (For identification purpose only)

Office Services - Hong Kong 852 2822 0668 offices.hongkong@colliers.com Company Licence No: C-006069

central

Sole Agent

The Center

99 Queen’s Road Central > > > > > > > >

Surrender space Approx. area: 6,200 sq ft gross Partial seaview and mountain view Fitted premises in excellent condition 2 conference rooms and 9 manager rooms Raised floor Prominent tenancy profile Availability: Negotiable

Ryan Tong (S-322048)

James Lai (S-415275)

852 2822 0613 | 852 9229 6000 ryan.tong@colliers.com

852 2822 0548 | 852 9367 1850 james.lai@colliers.com Colliers International | Moving Times | Page 5

admiralty

hong kong isl and

Sole Agent

Lippo Centre 89 Queensway

wong chuk hang

> > > > > >

Approx. area: 1,565 sq ft gross Harbour view Fully fitted premises in excellent condition Furnished office Attractive rental package Availability: Negotiable

Caris Yeung (S-106301)

Philip Pang (S-460890)

852 2822 0576 | 852 9326 5256 caris.yeung@colliers.com

852 2822 0729 | 852 6017 9108 philip.pang@colliers.com

Special Listing

Wong Chuk Hang Close to Wong Chuk Hang MTR Station. South Island Line (East): Expected Completion in 2015

Global Trade Square 21 Wong Chuk Hang Road

> Typical floor area: Approx. 9,700 sq ft gross > Availability: 2Q 2014

Genesis

33-35 Wong Chuk Hang Road > Typical floor area: Approx 16,700 sq ft gross > Availability: 2Q 2014

Office Services - Hong Kong 852 2822 0668 offices.hongkong@colliers.com Company Licence No: C-006069

Page 6 | Colliers International | Moving Times

Global Trade Square 21 Wong Chuk Hang Road

Genesis 33-35 Wong Chuk Hang Road

Special Listing

Fully Fitted Law Firm Premises in Core Central Queen’s Road Central

Surrender space High zone Approx. area: 12,500 sq ft net Approx. 100% efficiency 24-hour zoned central air-conditioning Direct Central MTR Station access Connected to the Central walkway network Availability: To be confirmed

Liam McCartan (E-239988)

David Wood (S-308367)

852 2822 0685 | 852 9739 0577 liam.mccartan@colliers.com

852 2822 0694 | 852 9862 1573 david.wood@colliers.com

Special Listing

Iconic Office Building in West Kowloon > > > > >

Low zone and Mid zone Whole floors Approx. area: 22,000 – 37,000 sq ft gross Panoramic seaview On top of major shopping mall and connected to Kowloon MTR Station > Availability: Immediate / 1 year pre-commitment basis

Michael Nardella (S-313821)

Office Services - Hong Kong

852 2822 0681 | 852 6473 7483 michael.nardella@colliers.com

852 2822 0668 offices.hongkong@colliers.com

tsim Sha Tsui

> > > > > > > >

Central

hong kong isl and

Company Licence No: C-006069

Colliers International | Moving Times | Page 7

Central / admiralty

hong kong isl and

Hot Listings Bank of China Tower 1 Garden Road

Cheung Kong Center 2 Queen’s Road Central

Approx. Area (sq ft) 8,438 - 24,086 (L)

Approx. Area (sq ft) 2,379 - 10,577 (L)

Estimated Effective Rent (HKD psf) $70 - $75

Estimated Effective Rent (HKD psf) $120 - $130

Citibank Plaza - Citibank Tower 3 Garden Road

Citibank Plaza - ICBC Tower 3 Garden Road

Approx. Area (sq ft) 1,650 - 140,569 (L)

Approx. Area (sq ft) 954 - 115,137 (L)

Estimated Effective Rent (HKD psf) $65 - $75

Estimated Effective Rent (HKD psf) $65 - $75

CITIC Tower

Club Lusitano

1 Tim Mei Avenue

16 Ice House Street Approx. Area (sq ft) 3,253 - 36,160 (L)

Approx. Area (sq ft) 3,092 - 9,276 (G)

Estimated Effective Rent (HKD psf) $55 - $65

Estimated Effective Rent (HKD psf) $45 - $50

Entertainment Building 30 Queen’s Road Central

Hutchison House 10 Harcourt Road

Approx. Area (sq ft) 1,475 - 4,943 (L)

Approx. Area (sq ft) 403 - 26,541 (G)

Estimated Effective Rent (HKD psf) $65 - $75

Estimated Effective Rent (HKD psf) $50 - $65

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Page 8 | Colliers International | Moving Times

Hot Listings Lippo Centre

Man Yee Building

89 Queensway

60-68 Des Voeux Road Central Approx. Area (sq ft) 1,261 - 11,173 (G)

Approx. Area (sq ft) 2,744 - 11,482 (L)

Estimated Effective Rent (HKD psf) $45 - $62

Estimated Effective Rent (HKD psf) $68 - $72

Nan Fung Tower

84-86 Connaught Road Central

Nexxus Building

77 Des Voeux Road Central

Approx. Area (sq ft) 3,411 - 7,774 (G)

Approx. Area (sq ft) 2,724 - 6,512 (L)

Estimated Effective Rent (HKD psf) $36 - $38

Estimated Effective Rent (HKD psf) $60 - $65

One International Finance Centre 1 Harbour View Street

Central / admiralty

hong kong isl and

Prosperity Tower

39 Queen’s Road Central Approx. Area (sq ft) 2,248 - 10,000 (L)

Approx. Area (sq ft) 1,720 - 5,483 (G)

Estimated Effective Rent (HKD psf) $125 - $135

Estimated Effective Rent (HKD psf) $55 - $65

Two International Finance Centre

The Centrium

8 Finance Street

60 Wyndham Street Approx. Area (sq ft) 1,161 - 8,736 (G)

Approx. Area (sq ft) 1,608 - 13,483 (L)

Estimated Effective Rent (HKD psf) $30 - $50

Estimated Effective Rent (HKD psf)

$120 - $150

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Colliers International | Moving Times | Page 9

sheung wan

hong kong isl and

Hot Listings FWD Financial Centre 308 Des Voeux Road Central

Golden Centre

188 Queen’s Road Central

Approx. Area (sq ft) 890 - 8,016 (G)

Approx. Area (sq ft) 2,186 - 5,385 (G)

Estimated Effective Rent (HKD psf) $35 - $36

Grand Millennium Plaza, COSCO Tower 183 Queen’s Road Central

Estimated Effective Rent (HKD psf) $36 - $38

One8One Queen’s Road Central 181 Queen’s Road Central

Approx. Area (sq ft) 1,080 - 20,506 (G)

Approx. Area (sq ft) 1,803 - 15,451 (G)

Estimated Effective Rent (HKD psf) $42 - $58

Estimated Effective Rent (HKD psf) $33 - $43

Shun Tak Centre

200 Connaught Road Central

The Center

99 Queen’s Road Central

Approx. Area (sq ft) 1,199 - 13,239 (G)

Approx. Area (sq ft) 1,887 - 19,558 (G)

Estimated Effective Rent (HKD psf) $42 - $55

Estimated Effective Rent (HKD psf) $50 - $73

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Page 10 | Colliers International | Moving Times

Hot Listings 248 Queen’s Road East

Allied Kajima Building

Approx. Area (sq ft) 882 - 6,792 (G)

Approx. Area (sq ft) 2,806 - 9,506 (G)

Estimated Effective Rent (HKD psf) $33 - $38

Estimated Effective Rent (HKD psf) $36 - $38

Central Plaza

China Resources Building

Approx. Area (sq ft) 903 - 5,362 (L)

Approx. Area (sq ft) 1,330 - 15,471 (L)

Estimated Effective Rent (HKD psf)

$55 - $60

Estimated Effective Rent (HKD psf) $50 - $60

Dah Sing Financial Centre

Harbour Centre

Approx. Area (sq ft) 2,359 - 10,194 (L)

Approx. Area (sq ft) 1,013 - 6,575 (L)

Estimated Effective Rent (HKD psf) $52 - $58

Estimated Effective Rent (HKD psf) $47 - $65

Harcourt House

Hopewell Centre

Approx. Area (sq ft) 543 - 3,029 (G)

Approx. Area (sq ft) 651 - 30,575 (L)

Estimated Effective Rent (HKD psf) $34 - $40

Estimated Effective Rent (HKD psf) $42 - $52

Shui On Centre

Sun Hung Kai Centre

Approx. Area (sq ft) 390 - 11,501 (G)

Approx. Area (sq ft) 489 - 4,900 (L)

Estimated Effective Rent (HKD psf) $38 - $52

Estimated Effective Rent (HKD psf)

248 Queen’s Road East

18 Harbour Road

138 Gloucester Road

wan chai

hong kong isl and

26 Harbour Road

108 Gloucester Road

39 Gloucester Road

6-8 Harbour Road

25 Harbour Road

183 Queen’s Road East

30 Harbour Road

$50 - $60

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Colliers International | Moving Times | Page 11

causeway bay

hong kong isl and

Hot Listings Caroline Centre, Lee Gardens Two 28 Yun Ping Road

Sino Plaza

255-257 Gloucester Road

Approx. Area (sq ft) 6,532 - 9,120 (L)

Approx. Area (sq ft) 1,538 - 3,906 (G)

Estimated Effective Rent (HKD psf) $45 - $48

Estimated Effective Rent (HKD psf) $37 - $40

Soundwill Plaza

The Lee Gardens

38 Russell Street

33 Hysan Avenue Approx. Area (sq ft) 1,679 - 7,156 (G)

Approx. Area (sq ft) 2,378 - 5,113 (L)

Estimated Effective Rent (HKD psf) $42 - $47

Estimated Effective Rent (HKD psf) $45 - $63

Times Square

Top Glory Tower

1 Matheson Street

262 Gloucester Road Approx. Area (sq ft) 950 - 39,118 (G)

Approx. Area (sq ft) 1,417 - 4,624 (G)

Estimated Effective Rent (HKD psf) $47 - $55

Estimated Effective Rent (HKD psf) $43 - $46

Windsor House, ACE Tower 311 Gloucester Road

World Trade Centre 280 Gloucester Road

Approx. Area (sq ft) 1,551 - 19,897 (G)

Approx. Area (sq ft) 1,818 - 6,900 (G)

Estimated Effective Rent (HKD psf) $34 - $40

Estimated Effective Rent (HKD psf) $48 - $52

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Page 12 | Colliers International | Moving Times

Hot Listings @Convoy

88 Hing Fat Street

169 Electric Road

88 Hing Fat Street Approx. Area (sq ft) 3,770 - 10,532 (G)

Approx. Area (sq ft) 1,400 - 4,200 (G)

Estimated Effective Rent (HKD psf) $36 - $37

Estimated Effective Rent (HKD psf) $27 - $28

148 Electric Road

island east

hong kong isl and

633 King’s Road

148 Electric Road

633 King’s Road Approx. Area (sq ft) 1,685 - 6,520 (G)

Approx. Area (sq ft) 7,260 - 10,045 (G)

Estimated Effective Rent (HKD psf) $26 - $27

Estimated Effective Rent (HKD psf) $29 - $32

AIA Tower

Citicorp Centre

183 Electric Road

18 Whitfield Road Approx. Area (sq ft) 1,034 - 12,899 (L)

Approx. Area (sq ft) 5,480 - 14,074 (G)

Estimated Effective Rent (HKD psf) $36 - $42

Estimated Effective Rent (HKD psf) $29 - $33

Prosperity Millennia Plaza 663 King’s Road

Best Building in Island East Island East

Approx. Area (sq ft) 568 - 8,314 (G)

Approx. Area (sq ft) 6,693 - 105,597 (L)

Estimated Effective Rent (HKD psf) $28 - $30

Estimated Effective Rent (HKD psf) $50 - $62

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Hong Kong

852 2822 0668 offices.hongkong@colliers.com

Colliers International | Moving Times | Page 13

hong kong isl and

Recent Leasing Transactions SHEUNG WAN / CENTRAL / admiralty Building

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Face Rent (HKD psf)

8 Queen's Road Central AIA Central AIA Central Cheung Kong Center Citibank Plaza, Citibank Tower Infinitus Plaza Infinitus Plaza Lippo Centre - Tower 1 Nine Queen's Road Central

3,000 (L) 15,400 (L) 15,500 (L) 12,700 (L) 17,600 (L) 2,300 (G) 11,900 (G) 2,100 (G) 3,300 (G)

Banking & Finance Banking & Finance Banking & Finance Banking & Finance I.T. Engineering Legal Trading Trading

$78.00 $91.00 $97.00 $122.00 $80.00 $45.50 $45.50 $38.50 $48.00

One IFC

52,800 (L)

Banking & Finance

$124.00

St George's Building The Centrium The Landmark, Edinburgh Tower Two Exchange Square Two IFC Two IFC Two IFC Two IFC Two IFC United Centre World-Wide House

3,900 (N) 1,500 (G) 9,000 (N) 7,200 (N) 23,000 (L) 15,200 (L) 23,600 (L) 3,400 (L) 4,500 (L) 20,500 (G) 3,300 (G)

Renewal Renewal New Lease Renewal Renewal Renewal Renewal New Lease New Lease New Lease & Renewal Renewal New Lease New Lease Renewal New Lease New Lease Rent Review New Lease New Lease New Lease New Lease

Electronics Banking & Finance Legal Banking & Finance Banking & Finance Banking & Finance Banking & Finance Banking & Finance Banking & Finance Legal Banking & Finance

$86.00 $37.00 $128.00 $120.00 $132.00 $126.00 $120.00 $135.00 $120.00 $42.00 $48.00

wan chai / CAUSEWAY BAY Building

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Face Rent (HKD psf)

28 Hennessy Road 28 Hennessy Road BEA Harbour View Centre

4,900 (L) 4,900 (L) 4,000 (G)

Insurance Banking & Finance Legal

$54.00 $63.00 $36.00

Central Plaza

9,000 (L)

Banking & Finance

$57.00

Fortis Tower Overseas Trust Bank Building Sun Hung Kai Centre The Hennessy The Hennessy The Lee Gardens Times Square - Tower One W Square World Trade Centre World Trade Centre

6,300 (G) 2,700 (G) 6,100 (L) 3,500 (G) 3,500 (G) 4,000 (L) 800 (G) 5,500 (G) 8,800 (G) 12,800 (G)

New Lease New Lease New Lease New Lease & Renewal New Lease New Lease Renewal Renewal New Lease New Lease New Lease New Lease New Lease New Lease

Banking & Finance Accounting Sales & Marketing Natural Resources Retail Banking & Finance I.T. Beauty / Hair / Fitness Beauty / Hair / Fitness Beauty / Hair / Fitness

$42.00 $28.50 $59.50 $33.00 $27.00 $65.00 $48.60 $38.00 $56.50 $52.50

island east Building

633 King's Road Cityplaza Four

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Face Rent (HKD psf)

34,600 (G) 72.300 (L)

Renewal Renewal

Garments & Textiles Banking & Finance

$29.00 - $32.50 $44.00

TSIM SHA TSUI Building

International Commerce Centre (ICC) (G) = Gross

(L) = Lettable

(N) = Net

Page 14 | Colliers International | Moving Times

Approx Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Face Rent (HKD psf)

10,100 (G)

New Lease

Transportation & Logistics

$82.00

Kwai Chung kwun Tong Hung Hom Mong Kok San Po Kong Tsim sha tsui Tsuen wan

Kowloon

Tsim Sha Tsui

kowloo n

Sole Agent

Harbour City 7 Canton Road

> > > > >

Approx. area: 18,000 sq ft gross Sits ontop of Harbour City shopping mall Next to a 5-star hotel and great amendities Great tenancy mix within the portfolio High quality building management

Fiona Ngan (E-197789)

Patrick Mak (E-187858)

852 2822 0751 fiona.ngan@colliers.com

852 2822 0752 patrick.mak@colliers.com

Page 16 | Colliers International | Moving Times

Sole Agent

King Palace Plaza 52A Sha Tsui Road

> > > >

tsuen wan Kowloon Bay

kowloo n

Approx. area: 23,000 sq ft gross High class industrial building New renovation with deluxe decoration High floor seaview

Floor plan (For identification purpose only)

Ben Fong (S-086602) 852 2822 0799 ben.fong@colliers.com

Tommy Ng (E-220625) 852 2822 0790 tommy.ng@colliers.com Colliers International | Moving Times | Page 17

tsim sha tsui

kowloo n

Sole Agent

Empire Centre 68 Mody Road

> Approx. area: 5,400 sq ft gross > The only 5,000 sqft space available in Empire Centre > 180-degree seaview

Patrick Mak (E-187858) 852 2822 0752 patrick.mak@colliers.com

Winson Lam (E-167195) 852 2822 0754 winson.lam@colliers.com

Hongkong Offshore Centre 28 Austin Avenue

> Approx. area: 1,000 sq ft gross > Serviced office > Shopping arcades within walking distance

Floor plan (For identification purpose only)

Simon Yu (S-414452)

Jonathan Chan (S-467510)

852 2822 0759 simon.yu@colliers.com

852 2822 0762 jonathan.chan@colliers.com

Page 18 | Colliers International | Moving Times

kowloo n

tsuen wan Kowloon Bay

Sole Agent

Miramar Tower 1-23 Kimberley Road > > > >

Approx. area: 6,600 sq ft gross Fully fitted with typical office furniture Overlook Kowloon Park view On top of a large shopping mall and next to a hotel

Floor plan (For identification purpose only)

Patrick Mak (E-187858)

Winson Lam (E-167195)

Jonathan Liu (E-328848)

852 2822 0752 patrick.mak@colliers.com

852 2822 0754 winson.lam@colliers.com

852 2822 0760 jonathan.liu@colliers.com

The Gateway 1 25 Canton Road

> Approx. area: 5,000 sq ft gross > Rare 5,000 sq ft space on high floor of The Gateway > Move-in condition with furniture

Floor plan (For identification purpose only)

Patrick Mak (E-187858)

Steve Ng (E-188091)

Winson Lam (E-167195)

852 2822 0752 patrick.mak@colliers.com

852 2822 0753 steve.ng@colliers.com

852 2822 0754 winson.lam@colliers.com Colliers International | Moving Times | Page 19

kwun tong

kowloo n

Sole Agent

Manulife Financial Centre 223-231 Wai Yip Street > > > >

Approx. area: 5,200 sq ft gross Grade A office specification Panoramic seaview With clubhouse and shuttle bus facilities to/from APM

Ivan Wong (E-241525)

Joe Cheng (E-225818)

852 2822 0756 ivan.wong@colliers.com

852 2822 0798 joe.cheng@colliers.com

Millennium City 2 378 Kwun Tong Road

> Approx. area: 1,900 - 2,400 sq ft gross > Direct linkage to Ngau Tau Kok MTR Station > Excellent property management

Patrick Mak (E-187858)

Steve Ng (E-188091)

Ella Lai (S-342139)

852 2822 0752 patrick.mak@colliers.com

852 2822 0753 steve.ng@colliers.com

852 2822 758 ella.lai@colliers.com

Page 20 | Colliers International | Moving Times

Sole Agent

579 Nathan Road 579 Nathan Road > > > >

Close to MTR Station Convenient, supported by many modes of transportation Supported by many F&B and banking facilities Shopping arcades within walking distance

Mong Kok Kowloon Bay

kowloo n

Jonathan Chan (S-467510)

Otto Hui (S-467500)

852 2822 0762 jonathan.chan@colliers.com

852 2822 0761 otto.hui@colliers.com

Joint Sole Agent

Nanyang Plaza 57 Hung To Road > > > >

Approx. area: 1,700 - 7,803 sq ft gross High quality industrial / office building 7 minutes walking distance to Kwun Tong MTR Station Supported by many F&B and banking facilities nearby

Murphy Chung (E-216220)

Jonathan Chan (S-467510)

852 2822 0755 murphy.chung@colliers.com

852 2822 0762 jonathan.chan@colliers.com

Kwun Tong Kowloon Bay

Floor plan (For identification purpose only)

Colliers International | Moving Times | Page 21

Kwai chung

kowloo n

Hot Listing

The Octagon 6 Sha Tsui Road

The above images shown represent an artist’s impression of the development concerned only, they are not photographs taken on-site. They are not drawn to scale and/or may have been edited and processed with computerised imaging techniques. The above images regarding the environment, views, and interior designs of the development concerned do not represent the actual environment, views and final interior designs. The developer also advises relevant persons to conduct an on-site visit for a better understanding of the development site, its surrounding environment and the public facilities nearby.

> > > >

Pure Grade-A office tower with approx. 400,000 sq ft gross Target completion in 4Q 2014 State-of-the-art specifications Practical floor plate of approx. 15,000 sq ft gross with 2,850 mm clear headroom and 150 mm raised floor > Elegant lobby with all-weather drop-off and the Sky Garden > Generous parking facilities and shuttle services to MTR station provided > An en-bloc ownership by a renowned developer K. Wah Group

Murphy Chung (E-216220)

Joe Cheng (E-225818)

852 2822 0755 murphy.chung@colliers.com

852 2822 0798 joe.cheng@colliers.com

Page 22 | Colliers International | Moving Times

kowloo n

Kowloon Bay

Hot Listing

One Kowloon 1 Wang Yuen Street

Floor plan (For identification purpose only)

> > > >

Approx. area: 23,000 sq ft gross Grade A office specification Excellent tenancy mix within the portfolio Next to large shopping mall “MegaBox�

Floor plan (For identification purpose only)

Fiona Ngan (E-197789)

Steve Ng (E-188091)

852 2822 0751 fiona.ngan@colliers.com

852 2822 0753 steve.ng@colliers.com Colliers International | Moving Times | Page 23

kwai chung

kowloo n

Hot Listing

Kowloon Commerce Centre Tower 2 51 Kwai Cheong Road

kwun tong

> Approx. area: 13,000 - 52,600 sq ft gross > The first green office building in Hong Kong registered under LEED certification > Covered bridge directly linked to the platform of Kwai Hing MTR Station > Good tenancy mix in the building portfolio > Large typical floor plate

Ben Fong (S-086602)

Murphy Chung (E-216220)

852 2822 0799 ben.fong@colliers.com

852 2822 0755 murphy.chung@colliers.com

Hot Listing

AXA Tower / AIA Kowloon Tower 100 How Ming Street > > > > >

Approx. area: 4,000 - 27,000 sq ft gross Modern Grade A office specifications 6 minutes walking distance to Kwun Tong MTR Station Nice seaview Both bare shell and fitted out units are available in this building

Fiona Ngan (E-197789)

Ivan Wong (E-241525)

852 2822 0751 fiona.ngan@colliers.com

852 2822 0756 ivan.wong@colliers.com

Page 24 | Colliers International | Moving Times

Hot Listings

Manhattan Place 23 Wang Tai Road > > > > >

Approx. area: 12,500 - 16,850 sq ft gross Panoramic seaview Next to the large shopping mall “MegaBox” Grade A office building in Kowloon Bay Good tenancy mix in its portfolio

Ivan Wong (E-241525)

Steve Ng (E-188091)

852 2822 0756 ivan.wong@colliers.com

852 2822 0753 steve.ng@colliers.com

kowloon Kowloon bay Bay

kowloo n

YHC Tower 1 Sheung Yuet Road > > > >

Approx. area: 12,263 sq ft gross Brand new Grade A office in Kowloon Bay Panoramic seaview Next to the shopping mall ”MegaBox” & ”E-Max”

Ivan Wong (E-241525)

Joe Cheng (E-225818)

852 2822 0756 ivan.wong@colliers.com

852 2822 0798 joe.cheng@colliers.com

Colliers International | Moving Times | Page 25

Kowloon East

kowloo n

Hot Listings Listing 9 Chong Yip Street

9 Chong Yip Street, Kwun Tong

APEC Plaza

49 Hoi Yuen Road, Kwun Tong

Approx. Area (sq ft) 1,400 - 3,000

Approx. Area (sq ft) 800 - 9,000

Estimated Effective Rent (HKD psf) $19.5 - $21

Estimated Effective Rent (HKD psf) $14 - $16

C-Bons International Center 108 Wai Yip Street, Kwun Tong

Lu Plaza

2 Wing Yip Street, Kwun Tong

Approx. Area (sq ft) 1,300 - 17,300

Approx. Area (sq ft) 1,800 - 23,000

Estimated Effective Rent (HKD psf) $28- $31

Estimated Effective Rent (HKD psf) $16- $18

Manulife Financial Centre 223-231 Wai Yip Street, Kwun Tong

Millennium City 1

388 Kwun Tong Road, Kwun Tong

Approx. Area (sq ft) 1,100 - 12,000

Approx. Area (sq ft) 800 - 21,500

Estimated Effective Rent (HKD psf) $26 - $29

Estimated Effective Rent (HKD psf) $27 - $30

Millennium City 2

378 Kwun Tong Road, Kwun Tong

Millennium City 5

418 Kwun Tong Road, Kwun Tong

Approx. Area (sq ft) 700 - 4,000

Approx. Area (sq ft) 3,300 - 18,000

Estimated Effective Rent (HKD psf) $26 - $27

Estimated Effective Rent (HKD psf) $33 - $36

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Kowloon

852 2822 0722 offices.kowloon@colliers.com

Page 26 | Colliers International | Moving Times

Hot Listings One Harbour Square 181 Hoi Bun Road, Kwun Tong

Pioneer Place

213 Wai Yip Street, Kwun Tong

Approx. Area (sq ft) 17,000 - 18,000

Approx. Area (sq ft) 20,000 - 27,000

Estimated Effective Rent (HKD psf) $28 - $30

Estimated Effective Rent (HKD psf) $22 - $25

Rykadan Capital Tower 135 Hoi Bun Road, Kwun Tong

South Asia Commercial Centre 64 Tsun Yip Street, Kwun Tong

Approx. Area (sq ft) 12,000

Approx. Area (sq ft) 1,000 - 10,300

Estimated Effective Rent (HKD psf) $25+

Estimated Effective Rent (HKD psf) Subject to offer

Enterprise Square 1

9 Sheung Yuet Road, Kowloon Bay

Enterprise Square 3

39 Wang Chiu Road, Kowloon Bay

Approx. Area (sq ft) 3,000 - 28,000

Approx. Area (sq ft) 2,200 - 16,100

Estimated Effective Rent (HKD psf) $19.5 - $20

Estimated Effective Rent (HKD psf) $40

Exchange Tower

33 Wang Chiu Road, Kowloon Bay

kowloon EAST

kowloo n

Skyline Tower

39 Wang Kwong Road, Kowloon Bay

Approx. Area (sq ft) 600 - 27,500

Approx. Area (sq ft) 600 - 7,500

Estimated Effective Rent (HKD psf) $27 - $30

Estimated Effective Rent (HKD psf) $22 - $25

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Kowloon

852 2822 0722 offices.kowloon@colliers.com

Colliers International | Moving Times | Page 27

tSIM sHA tSUI

kowloo n

Hot Listings China Hong Kong City 33 Canton Road

China Minmetals Tower 79 Chatham Road South

Approx. Area (sq ft) 1,000 - 10,000

Approx. Area (sq ft) 5,700

Estimated Effective Rent (HKD psf) $28 - $31

Estimated Effective Rent (HKD psf) $26 - $27

Chinachem Golden Plaza 77 Mody Road

Hong Kong Pacific Centre 28 Hankow Road

Approx. Area (sq ft) 1,100 - 20,000

Approx. Area (sq ft) 980

Estimated Effective Rent (HKD psf) $28 - $29

Estimated Effective Rent (HKD psf) $34 - $36

Miramar Tower

The Gateway Tower 1

1-23 Kimberley Road

25 Canton Road Approx. Area (sq ft) 2,200 - 14,000

Approx. Area (sq ft) 1,100 - 7,500

Estimated Effective Rent (HKD psf) $40 - $45

Estimated Effective Rent (HKD psf) $38 - $48

The Gateway Tower 2 25 Canton Road

The Gateway Tower 6 9 Canton Road

Approx. Area (sq ft) 1,000 - 6,000

Approx. Area (sq ft) 1,400 - 25,000

Estimated Effective Rent (HKD psf) $39 - $54

Estimated Effective Rent (HKD psf) $48 - $57

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Kowloon

852 2822 0722 offices.kowloon@colliers.com

Page 28 | Colliers International | Moving Times

Hot Listings 909 Cheung Sha Wan

Billion Plaza II

909 Cheung Sha Wan Road, Cheung Sha Wan

8 Cheung Yue Street, Cheung Sha Wan

Approx. Area (sq ft) 1,700 - 9,300

Approx. Area (sq ft) 4,935 up (L)

Estimated Effective Rent (HKD psf) $24 - $26

Estimated Effective Rent (HKD psf) $45 - $65

Cheung Sha Wan Plaza

Laford Centre

Approx. Area (sq ft) 1,100 - 7,700

Approx. Area (sq ft) 830 - 8,700

Estimated Effective Rent (HKD psf) $18 - $20

Estimated Effective Rent (HKD psf) $16 - $18

Saxon Tower

ATL Logistic Centre

Approx. Area (sq ft) 1,800 - 8,000

Approx. Area (sq ft) 5,000 -40,000

Estimated Effective Rent (HKD psf) $21 - $24

Estimated Effective Rent (HKD psf) $12 - $13

Ever Gain Plaza

KC100

Approx. Area (sq ft) 3,700 - 22,500

Approx. Area (sq ft) 24,000

Estimated Effective Rent (HKD psf) $16.50 - $18.50

Estimated Effective Rent (HKD psf) $26 - $28

Manhattan Centre

Metroplaza Tower 1

Approx. Area (sq ft) 1,200 - 15,000

Approx. Area (sq ft) 1,400 - 6,100

Estimated Effective Rent (HKD psf) $15 - $16

Estimated Effective Rent (HKD psf) $29 - $30

833 Cheung Sha Wan Road, Cheung Sha Wan

7 Cheung Shun Street, Cheung Sha Wan

88 Container Port Road, Kwai Chung

8 Kwai Cheong Road, Kwai Chung

kowloon West

kowloo n

838 Lai Chi Kok Road, Cheung Sha Wan

Container Terminal 3, Kwai Chung

100 Kwai Cheong Road , Kwai Chung

223 Hing Fong Road, Kwai Chung

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Kowloon

852 2822 0722 offices.kowloon@colliers.com

Colliers International | Moving Times | Page 29

others

kowloo n

Hot Listings Tower Jordan

6 Bowring Street, Tsim Sha Tsui

Langham Place

8 Argyle Street, Mong Kok

Approx. Area (sq ft) 980

Approx. Area (sq ft) 1,556 - 17,398

Estimated Effective Rent (HKD psf) $34 - $36

Estimated Effective Rent (HKD psf) $35 - $40

Park-In Commercial Centre 56 Dundas Street, Mong Kok

Skyway House

3 Sham Mong Road, Tai Kok Tsui

Approx. Area (sq ft) 500 - 10,000

Approx. Area (sq ft) 3,800 - 11,000

Estimated Effective Rent (HKD psf) $26 - $28

Estimated Effective Rent (HKD psf) $16 - $19

Delta House

Grand Central Plaza

3 On Yiu Street, Sha Tin

138 Sha Tin Rural Committee Road, Shatin Approx. Area (sq ft) 4,800 - 7,200

Approx. Area (sq ft) 1,000 - 7,600

Estimated Effective Rent (HKD psf) $18

Estimated Effective Rent (HKD psf) $30 - $32

HK Science Park Phase III Pak Shek Kok, New Territories

Landmark North

39 Lung Sum Avenue, Sheung Shui

Approx. Area (sq ft) 33,610

Approx. Area (sq ft) 700 - 8,200

Estimated Effective Rent (HKD psf) $18

Estimated Effective Rent (HKD psf) $23 - $25

Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure.

(G) = Gross

(L) = Lettable

(N) = Net

Office Services - Kowloon

852 2822 0722 offices.kowloon@colliers.com

Page 30 | Colliers International | Moving Times

kowloo n

Recent Leasing Transactions TSIM SHA TSUI Building

Approx. Area (sq ft)

Miramar Tower

38,000 (G)

The Gateway Tower 1

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

Finance

$32.00

15,628 (G)

Renewal and Expansion Renewal

Sourcing

$42.70

China Hong Kong City Tower 5

2,803 (G)

New Letting

IT & T

$26.00

Empire Centre

3,016 (G)

New Letting

Others

$36.40

Wharf T & T Centre

8,724 (G)

Renewal

Others

$34.50

KOWLOON EAST Building

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

KITEC

92,630 (G)

New Letting

Government

$18.00

Octa Tower

46,200 (G)

New Letting

Others

$20.00

Manulife Financial Centre Tower A

15,129 (G)

Renewal

Others

$22.10

Millennium City 1 SC Tower

9,584 (G)

Renewal

Consumer Products

$27.20

Manhattan Place

6,991 (L)

Renewal

Shipping / Logistic

$28.00

KOWLOON WESt Building

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

9 Wing Hong Street

11,871 (G)

New Letting

Others

$21.50

Cheung Sha Wan Plaza 2

11,384 (G)

Renewal

Others

$20.00

Kowloon Commerce Centre Tower 1

9,966 (G)

Renewal

IT & T

$29.00

909 Cheung Sha Wan Road

9,349 (G)

New Letting

Others

$27.00

Laford Centre

7,881 (G)

New Letting

Others

$14.85

Laws Commercial Plaza

7,881 (G)

New Letting

Others

$23.00

Mong Kok Building

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

Langham Place

17,398 (G)

New Letting

Consumer Products

$37.00

Grand Century Place Tower 2

11,552 (G)

Renewal

IT & T

$34.80

hung hom Building

The Metropolis Tower

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

5,409 (G)

New Letting

Others

$38.00

Shatin Building

Grand Central Plaza Tower 2 Delta House (G) = Gross

(L) = Lettable

Approx. Area (sq ft)

Deal Type

Business Nature of Tenant

Monthly Effective Rent (HKD psf)

9,338 (G) 4,854 (G)

Renewal New Letting

IT & T Others

$30.00 $20.00

(N) = Net

Colliers International | Moving Times | Page 31

Colliers International | marke t overview

Hong Kong’s

Heart Beat

Oversupply in Kowloon East means price slide is unavoidable The traditional sub-markets of Hong Kong Island remained quiet in 1Q 2014. Barring individual cases of mild expansion, most activities were small transactions of 5,000 sq ft or below from new startups, financial companies and business centres.

Tenants’ requirements in the Kowloon market were larger but generally capped at 10,000 sq ft.

Hong Kong Grade A Office Vacancy 16%

Vacancy Rate

12% 10%

6%

Long-term average 6.1%

4% 2%

Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

0%

Source: Colliers

Colliers View Given the projection of limited new completions and sustained low vacancy (i.e. 4.9%) in the secondary market, most tenants are expected to remain in situ upon lease expiry in 2014. They will likely look at options to make their offices more cost effective, including space planning and remodeling. Some China based companies are the exception, as they continue to expand outside of China using Hong Kong as their first step. The latest example was China Merchants Securities, who currently occupies 25,800 sq ft at One Exchange Square, recently committing to an additional floor (i.e. 14,000 sq ft) in Tower 2 of the same building.

Page 32 | Colliers International | Moving Times

The average Grade A office rent was virtually unchanged at HK$64 per sq ft per month in 1Q 2014. Central rents remained firm despite the fact that several Grade A buildings still have significant space available. Kowloon East started showing signs of rental decline due to competition from strata-title landlords who opted to lease their units in view of a weakened sales market.

Colliers View

14%

8%

Intensifying rental competition

Office rentals in 2014 are going to decrease slightly. Central is likely to soften more than surrounding areas as individual landlords adopt a more aggressive pricing strategy. Other than that, most sub-markets on Hong Kong Island will see nominal 1-2% growth. Tsim Sha Tsui and Kowloon East are predicted to undergo distinct rental reductions.

The key reason is rental affordability as a result of the uncertainty of the external business environment. In Kowloon East, it is more of a supply issue as rental competition is further intensified by the introduction of more stock from industrial revitalisation projects.

9%

kowloon east rental forecast

Colliers International | marke t overview

Yield rates normalisation

Colliers View The average cap rate was flat at 2.9% in 1Q 2014. However, the change of rental expectations, the imminent threat of increasing interest rates and the general rise of funding costs have prompted more prospective office buyers to demand a wider yield spread. The result will be gradual restoration of the current ultra-low yield rates back to its long-term average of 4.6%; similar to the spikes which occurred in 2005 and 2008. The full spike may not materialise in 2014, however an increase of 25 basis points is very likely. As such, it is our view that office prices will see a steeper downward adjustment in the order of 10% in 2014.

Due to expectations of rent softening, and the increase in transaction costs arising from double stamp duty, the overall volume of the investment sales market activity plummeted 39% to HK$3.4 billion in 1Q 2014. With the exception of government land sales, there were no whole-block transactions concluded during the period. Several strata-title sales occurred as smaller owners were more flexible with pricing.

Hong Kong Grade A Office Yield 9.0% 8.0%

Play safe

Yield (% per annum)

7.0% 6.0%

Long-term average 4.6%

5.0% 4.0% 3.0% 2.0% 1.0%

Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

0.0%

Source: HKSAR Government

Further to the acquisition of a commercial site in Kowloon Bay by Swire Properties in November 2013, Mapletree, a real estate investment trust, ventured into the market by acquiring a commercial site in Kwun Tong for HK$3.77 billion (an accommodation value of HK$5,708 per sq ft). The deal not only translates into a higher than expected unit price tag but is also a vote of confidence by foreign players.

Colliers View Kowloon East is not a new story, however, many are unaware of the magnitude of its likely impact on the Hong Kong landscape over the next 10 years, as the area is gradually transformed into a commercial hub. What we have seen over the past 8 years is the introduction of new tenants including insurers, financial services and multi-national corporations engaged in wholesale and distribution. The current trend is the broadening of investor profile from traditional property developers to long-term investors and investment funds. Despite the short-term market volatility, the sub-market of Kowloon East, comprising both Kowloon Bay and Kwun Tong, remains appealing to investors who are looking for value-add opportunities on a medium to long-term time frame.

39%

investment sales Market activity

10% office price

Kowloon East office stock

3X

CENTRAL

Colliers International | Moving Times | Page 33

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Office Services - Hong Kong 5701 Central Plaza, 18 Harbour Road Wanchai Hong Kong Tel: 852 2822 0668 Fax: 852 2869 4082 Email: offices.hongkong@colliers.com

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