AUGUST 2014
HONG KONG EDITION
Hong Kong Commercial Real Estate at Your Fingertips
HONG KONG
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The Growth of Chinese Corporates The best of the best
Market outlook
A comprehensive portfolio showcasing premier office leasing opportunities across Hong Kong
Key deal boost investors’ confidence
Chinese corporates continue to drive the market
34
HONG KONG’S
heartBEAT
Chinese corporates continue to drive the market
c over S tory
Hong Kong Island Sole Agency Appointments Special Listings
5 6 8
Hot Listings Recent Leasing Transactions
14
Kowloon Joint Sole Marketing Agent Hot Listings Sole & Joint Sole Agency Appointments Hot Listings Recent Leasing Transactions
16 18 20 23
33
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 Newly renovated premises with sea view Column-free design floorplate Close proximity to hotels Close to public transportation Availability: Immediate
wan chai
h on g kong isl and
Typical floor plan (For identification purpose only)
Billy Ng (S-285378)
Sam Gourlay (S-480270)
852 2822 0558 | 852 9145 8148 billy.ng@colliers.com
852 2822 0618 | 852 9100 0307 sam.gourlay@colliers.com
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
central
tsim sha tsui
h on g kong isl and
Sole Agent
Iconic Office Building in West Kowloon > > > > > > > > >
Approx. area: 22,115 sq ft gross Sea view Low zone Direct lobby entrance Single occupier floor Fully fitted or bare shell Very competitive rental package Above Airport Express Station Availability: Immediate
Sam Gourlay (S-480270)
Liam McCartan (E-239988)
852 2822 0618 | 852 9100 0307 sam.gourlay@colliers.com
852 2822 0685 | 852 9739 0577 liam.mccartan@colliers.com
Special Listing
Rare Prestige Stock in Central Connaught Road Central > > > >
Surrender space Approx. area: 3,336 sq ft lettable Open garden view 4 director rooms, 2 manager rooms, 1 conference room, 1 meeting room, open plan and 12 workstations > Brand new decent decoration > The only availability for lease within the whole building > 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
Page 6 | Colliers International | Moving Times
Special Listings
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
Whole Floor Premises in United Centre > > > > > >
Approx. area: 20,489 sq ft gross Mid zone Sea view and open city view Fully fitted Above Admiralty MTR Station Availability: Q1-2015
Billy Ng (S-285378)
Michael Nardella (S-313821)
852 2822 0558 | 852 9145 8148 billy.ng@colliers.com
852 2822 0681 | 852 6473 7483 michael.nardella@colliers.com
admiralty
> > > > > > > >
central
h on g kong isl and
Colliers International | Moving Times | Page 7
Central / admiralty
h on g kong isl and
Hot Listings Bank of China Tower 1 Garden Road
Cheung Kong Center 2 Queen’s Road Central
Approx. Area (sq ft) 8,448 - 24,442 (L)
Approx. Area (sq ft) 2,950 - 6,653 (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) 1,009 - 40,802 (L)
Approx. Area (sq ft) 954 - 33,507 (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 - 18,080 (L)
Approx. Area (sq ft) 3,092 (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) 2,464 - 4,943 (L)
Approx. Area (sq ft) 650 - 33,903 (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) 1,010 - 11,173 (G)
Approx. Area (sq ft) 3,194 - 11,482 (L)
Estimated Effective Rent (HKD psf) $45 - $62
Estimated Effective Rent (HKD psf) $72 - $75
Nan Fung Tower
84-86 Connaught Road Central
Nexxus Building
77 Des Voeux Road Central
Approx. Area (sq ft) 2,366 - 9,000 (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
h on g kong isl and
Prosperity Tower
39 Queen’s Road Central Approx. Area (sq ft) 2,248 - 2,585 (L)
Approx. Area (sq ft) 5,442 (G)
Estimated Effective Rent (HKD psf) $125 - $135
Estimated Effective Rent (HKD psf) $60 - $65
Two International Finance Centre
The Centrium
8 Finance Street
60 Wyndham Street Approx. Area (sq ft) 1,163 - 4,475 (G)
Approx. Area (sq ft) 2,308 - 14,471 (L)
Estimated Effective Rent (HKD psf) $35 - $48
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
h on g 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 - 24,048 (G)
Approx. Area (sq ft) 3,932 - 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) $35 - $36
One8One Queen’s Road Central 181 Queen’s Road Central
Approx. Area (sq ft) 1,299 - 20,506 (G)
Approx. Area (sq ft) 2,225 - 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) 1,191 - 19,900 (G)
Approx. Area (sq ft) 1,763 - 25,050 (G)
Estimated Effective Rent (HKD psf) $42 - $55
Estimated Effective Rent (HKD psf) $55 - $73
Estimated effective rent (HK$ 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) 2,470 - 13,752 (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 - 5,349 (L)
Approx. Area (sq ft) 1,813 - 15,471 (L)
Estimated Effective Rent (HKD psf)
$52 - $68
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) 1,098 - 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) 437 - 3,539 (G)
Approx. Area (sq ft) 1,304 - 6,490 (L)
Estimated Effective Rent (HKD psf) $34 - $40
Estimated Effective Rent (HKD psf) $47 - $50
Shui On Centre
Sun Hung Kai Centre
Approx. Area (sq ft) 390 - 11,501 (G)
Approx. Area (sq ft) 1,997 - 4,898 (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
h on g 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
$55 - $60
Estimated effective rent (HK$ 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
h on g 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) 1,551 - 4,101 (G)
Estimated Effective Rent (HKD psf) $45 - $48
Estimated Effective Rent (HKD psf) $40 - $45
Soundwill Plaza
The Lee Gardens
38 Russell Street
33 Hysan Avenue Approx. Area (sq ft) 1,372 - 7,156 (G)
Approx. Area (sq ft) 1,898 - 15,608 (L)
Estimated Effective Rent (HKD psf) $43 - $47
Estimated Effective Rent (HKD psf) $45 - $63
Times Square
Top Glory Tower
1 Matheson Street
262 Gloucester Road Approx. Area (sq ft) 966 - 39,118 (G)
Approx. Area (sq ft) 1,666 - 3,691 (G)
Estimated Effective Rent (HKD psf) $47 - $55
Estimated Effective Rent (HKD psf) $40 - $46
Windsor House, ACE Tower 311 Gloucester Road
World Trade Centre 280 Gloucester Road
Approx. Area (sq ft) 7,403 - 19,892 (G)
Approx. Area (sq ft) 1,640 - 12,770 (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) 2,200 - 30,678 (G)
Approx. Area (sq ft) 1,400 - 4,200 (G)
Estimated Effective Rent (HKD psf) $33 - $36
Estimated Effective Rent (HKD psf) $27 - $28
148 Electric Road
island east
h on g kong isl and
633 King’s Road
148 Electric Road
633 King’s Road Approx. Area (sq ft) 1,678 - 8,205 (G)
Approx. Area (sq ft) 7,260 - 10,045 (G)
Estimated Effective Rent (HKD psf) $26 - $27
Estimated Effective Rent (HKD psf) $30 - $38
AIA Tower
Citicorp Centre
183 Electric Road
18 Whitfield Road Approx. Area (sq ft) 1,018 - 12,899 (L)
Approx. Area (sq ft) 2,556 - 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) 577 - 1,587 (G)
Approx. Area (sq ft) 9,358 - 85,228 (L)
Estimated Effective Rent (HKD psf) $28 - $30
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
Colliers International | Moving Times | Page 13
h on g kong isl and
Recent Leasing Transactions Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
sheung wan / central / admiralty 33 Des Voeux Road Central
8,600 (G)
New Lease
Business Centre
$60.50
Admiralty Centre Tower 1
5,100 (G)
Renewal
Banking & Finance
$40.50
CCB Tower
7,400 (L)
New Lease
Banking & Finance
$110.00
Cheung Kong Center
12,800 (L)
Renewal
Banking & Finance
$138.00
Citibank Plaza, Citibank Tower
9,000 (L)
New Lease
Trading
$75.00
Entertainment Building
6,100 (L)
New Lease
Banking & Finance
$80.00
Grand Millennium Plaza, COSCO Tower
13,400 (G)
Renewal
Design
$42.00
Henley Building
3,200 (L)
New Lease
Banking & Finance
$77.00
Infinitus Plaza
5,200 (G)
New Lease
Trading
$44.00
Infinitus Plaza
11,900 (G)
New Lease
Real Estate
$49.00
Lippo Centre - Tower 1
1,900 (G)
New Lease
Banking & Finance
$44.00
Nexxus Building
25,900 (L)
Renewal
Banking & Finance
$74.00
Nine Queen's Road Central
5,900 (G)
New Lease
Legal
$52.00
One IFC
14,600 (L)
Restructure
Banking & Finance
$130.00
One Pacific Place
22,500 (L)
Renewal
Banking & Finance
$95.00
Shun Tak Centre - West Tower
2,400 (G)
New Lease
Trading
$48.00
The Center
5,800 (G)
New Lease
I.T.
$72.50
The Centrium
1,200 (G)
New Lease
Banking & Finance
$43.00
The Centrium
3,300 (G)
Renewal
Management Consulting
$42.00
Two IFC
10,100 (L)
Renewal
Banking & Finance
$135.50
Two IFC
15,800 (L)
New Lease
Banking & Finance
$132.00
United Centre
10,300 (G)
Renewal
Legal
$34.00
World-Wide House
3,200 (G)
New Lease
Trading
$46.50
248 Queen's Road East
10,600 (G)
Renewal
Government / Organisation
$38.00
248 Queen's Road East
1,200 (G)
Renewal
Government / Organisation
$32.50
Central Plaza
3,800 (L)
Renewal
Design
$59.00
Central Plaza
7,100 (L)
Renewal
Insurance
$55.40
Fortis Tower
6,400 (G)
New Lease
Trading
$37.00
Great Eagle Centre
2,900 (L)
Renewal
I.T.
$55.00
The Phoenix
4,000 (G)
New Lease
Trading
$40.00
Times Square - Tower One
34,000 (G)
Renewal
Architects
$56.00
World Trade Centre
4,600 (G)
New Lease
Beauty / Hair / Fitness
$48.00
World Trade Centre
5,900 (G)
Renewal
Banking & Finance
$51.50
633 King's Road
10,000 (G)
New Lease
Garments & Textiles
$35.00
AIA Tower
2,200 (L)
New Lease
Food & Beverages
$43.50
Chinachem Exchange Square
16,000 (G)
Renewal
Government / Organisation
$24.00
Kerry Centre
11,400 (L)
Renewal
Food & Beverages
$48.00
One Island South
29,800 (G)
New Lease
Medical & Health
$23.00
One Island South
1,000 (G)
New Lease
Medical & Health
$19.00
wa n c h ai / caus eway bay
is l a n d e a st
wo ng c huk han g
(G) = Gross
(L) = Lettable
(N) = Net
Page 14 | Colliers International | Moving Times
Kwai Chung kwun Tong Hung Hom Mong Kok San Po Kong Tsim sha tsui Tsuen wan
Kowloon
kwun tong
kowloo n
Hot Listing Joint Sole Marketing Agent
12-20/F, One Harbour Square 181 Hoi Bun Road, Kwun Tong
> > > >
Brand new office building Typical floor area: 17,726-18,972 sq ft gross Raised floor system with 5 kPa floor loading Mid to high zone units enjoy magnificent views of Victoria Harbour and the Cruise Terminal > High efficiency column-free design > Whole floor units are available, allowing occupiers to fully utlise the corridor spaces > Benefitting from the CBD2 and the Kai Tak Development Project with improved infrastructure and transportation network.
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
hoi bun road
kow loo n
COMMON AREAS* H.R.
LIFT 8
LIFT SHAFT
LIFT 7
LIFT SHAFT
AHU ROOM
LIFT SHAFT
LIFT LOBBY LIFT 9
P.D
M. LAV.
UP
P.D
UP
P.D
F. LAV.
P.D
C.D
LIFT 2
DN.
LIFT LOBBY
P.D
DN.
LIFT SHAFT
P.D
ELV. & E.M.R.
EXC. LAV.
ELV. & E.M.R.
P.D ACCESSIBLE UNISEX TOILET
C.D
PANTRY
LIFT 10
H.R.
P.D
LIFT 1 P.D
Tsun Yip Street Floor plan (For identification purpose only)
Colliers International | Moving Times | Page 17
kwai chung
kowloo n
Hot Listing
KC 100
100 Kwai Cheong Road, Kwai Chung
> > > > >
Approx. area: 24,000 sq ft gross Target completion in Q1 2015 High standard office building Supported by many F&B 7 minutes walking distance to Kwai Hing MTR Station
Floor plan (For identification purpose only)
Steve Ng (E-188091)
Ivan Wong (E-241525)
852 2822 0753 steve.ng@colliers.com
852 2822 0756 ivan.wong@colliers.com
Page 18 | Colliers International | Moving Times
Hot Listing
909 Cheung Sha Wan Road
> > > > >
cheung sha wan Kowloon Bay
kow loo n
Approx. area: 1,700 - 9,300 sq ft gross Metallic false ceiling system & rasied floor provision Efficient retangular layout Open view and high ceiling 7 minutes walking distance to Lai Chi Kok MTR Station
Winson Lam (E-167195)
Rommel Lau (S-478252)
852 2822 0754 winson.lam@colliers.com
852 2822 0765 rommel.lau@colliers.com Colliers International | Moving Times | Page 19
tsim sha tsui
kowloo n
Sole Agent
Hongkong Offshore Centre 28 Austin Avenue
> Approx. area: 850 sq ft gross > Serviced office > One tenant per floor
Floor plan (For identification purpose only)
Simon Yu (S-414452)
Jonathan Liu (E-328848)
852 2822 0759 simon.yu@colliers.com
852 2822 0760 jonathan.liu@colliers.com
Miramar Tower 1-23 Kimberley Road > > > >
Approx. area: 6,600 sq ft gross Fully fitted with typical office furniture Overlooking Kowloon Park 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
Page 20 | Colliers International | Moving Times
kow loo n
tsim sha tsui Kowloon Bay
Sole Agent
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)
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
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)
Jonathan Chan (S-467510)
852 2822 0756 ivan.wong@colliers.com
852 2822 0762 jonathan.chan@colliers.com
kwun tong Kowloon Bay
Patrick Mak (E-187858)
Colliers International | Moving Times | Page 21
kwun tong
kwun tong
kowloo n
Sole Agent
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 0758 ella.lai@colliers.com
Hot Listing Joint Sole Agent
Nanyang Plaza 57 Hung To Road > > > >
Approx. area: 1,700 - 5,100 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
Jerry Tam (S-235750)
Janet Chan (S-221538)
852 2822 0763 jerry.tam@colliers.com
852 2822 0660 janet.f.chan@colliers.com
Page 22 | Colliers International | Moving Times
Hot Listing
Energy Plaza 92 Granville Road > > > >
Approx. area: 2,250 - 24,000 sq ft gross Supported by plenty F&B & banking facilities Close to Tsim Sha Tsui East Rare sizable availability in Tsim Sha Tsui East
tsim sha tsui Kowloon Bay
kow loo n
Wang Cheung (E-242098)
Otto Hui (S-467500)
852 2822 0757 wang.cheung@colliers.com
852 2822 0761 otto.hui@colliers.com
Hot Listing
Rykadan Capital Tower 135 Hoi Bun Road
> Approx. area: 12,000 sq ft gross > High quality office building > 7 minutes walking distance to Ngau Tau Kok MTR Station > Panoramic seaview
Kwun Tong Kowloon Bay
Floor plan (For identification purpose only)
Floor plan (For identification purpose only)
Steve Ng (E-188091)
Jerry Tam (S-235750)
852 2822 0753 steve.ng@colliers.com
852 2822 0763 jerry.tam@colliers.com Colliers International | Moving Times | Page 23
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.
> > > >
True 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 Tsuen Wan MTR Station provided > An en-bloc ownership by a renowned developer K. Wah Group
Murphy Chung (E-216220)
Ella Lai (S-342139)
852 2822 0755 murphy.chung@colliers.com
852 2822 0758 ella.lai@colliers.com
Page 24 | Colliers International | Moving Times
kow loo 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 25
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
Steve Ng (E-188091)
Ivan Wong (E-241525)
852 2822 0753 steve.ng@colliers.com
852 2822 0756 ivan.wong@colliers.com
Page 26 | 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
Fiona Ngan (E-197789)
Patrick Mak (E-187858)
852 2822 0751 fiona.ngan@colliers.com
852 2822 0752 patrick.mak@colliers.com
kowloon Kowloon bay Bay
kow loo n
YHC Tower 1 Sheung Yuet Road > > > >
Approx. area: 1,305 - 12,528 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)
Jonathan Chan (S-467510)
852 2822 0756 ivan.wong@colliers.com
852 2822 0762 jonathan.chan@colliers.com
Colliers International | Moving Times | Page 27
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 - 1,900
Approx. Area (sq ft) 800 - 1,900
Estimated Effective Rent (HKD psf) $19.5 - $21
Estimated Effective Rent (HKD psf) $15 - $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) 1,700 - 10,500
Approx. Area (sq ft) 800 - 21,500
Estimated Effective Rent (HKD psf) $26 - $29
Estimated Effective Rent (HKD psf) $28 - $32
Millennium City 2
378 Kwun Tong Road, Kwun Tong
Millennium City 5
418 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 1,000 - 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 28 | Colliers International | Moving Times
Hot Listings Kin Sang Commercial Centre 49 King Yip Street, Kwun Tong
Pioneer Place
213 Wai Yip Street, Kwun Tong
Approx. Area (sq ft) 800 - 6,300
Approx. Area (sq ft) 20,000 - 27,000
Estimated Effective Rent (HKD psf) $22 - $25
Estimated Effective Rent (HKD psf) $20 - $22
Wong Tze Building
71 Hoi Yuen Road, Kwun Tong
South Asia Commercial Centre 64 Tsun Yip Street, Kwun Tong
Approx. Area (sq ft) 1,900 - 7,200
Approx. Area (sq ft) 1,000 - 10,300
Estimated Effective Rent (HKD psf) $18 - $20
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
kow loo n
Skyline Tower
39 Wang Kwong Road, Kowloon Bay
Approx. Area (sq ft) 600 - 26,700
Approx. Area (sq ft) 1,200 - 17,200
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 29
tSIM sHA tSUI
kowloo n
Hot Listings China Hong Kong City
8 Observatory Road
Chinachem Golden Plaza
Approx. Area (sq ft) 1,000 - 8,000
Approx. Area (sq ft) 10,000
Approx. Area (sq ft) 1,300 - 20,000
Estimated Effective Rent (HKD psf) $28 - $31
Estimated Effective Rent (HKD psf) Negotiable
Estimated Effective Rent (HKD psf) $28 - $29
South Sea Centre
Miramar Tower
Ocean Centre
Approx. Area (sq ft) 2,600 - 12,000
Approx. Area (sq ft) 900 - 14,000
Approx. Area (sq ft) 600 - 16,000
Estimated Effective Rent (HKD psf) $29 - $32
Estimated Effective Rent (HKD psf) $40 - $45
Estimated Effective Rent (HKD psf) $35 - $44
The Gateway Tower 1
The Gateway Tower 2
The Gateway Tower 6
Approx. Area (sq ft) 1,100 - 15,900
Approx. Area (sq ft) 1,000 - 18,000
Approx. Area (sq ft) 1,400 - 25,000
Estimated Effective Rent (HKD psf) $38 - $48
Estimated Effective Rent (HKD psf) $39 - $54
Estimated Effective Rent (HKD psf) $48 - $57
33 Canton Road
75 Mody Road
25 Canton Road
8 Observatory Road
1-23 Kimberley Road
25 Canton Road
77 Mody Road
5 Canton Road
9 Canton Road
Estimated effective rent (HK$ 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
Hot Listings Trade Square
Billion Plaza II
Cheung Sha Wan Plaza
Approx. Area (sq ft) 1,800 - 43,000
Approx. Area (sq ft) 348 - 11,600
Approx. Area (sq ft) 1,100 - 12,500
Estimated Effective Rent (HKD psf) $21- $23
Estimated Effective Rent (HKD psf) $25 - $28
Estimated Effective Rent (HKD psf) $18 - $20
Laford Centre
Saxon Tower
ATL Logistic Centre
Approx. Area (sq ft) 570 - 8,700
Approx. Area (sq ft) 550 - 8,000
Approx. Area (sq ft) 5,800 - 15,300
Estimated Effective Rent (HKD psf) $16 - $18
Estimated Effective Rent (HKD psf) $21 - $24
Estimated Effective Rent (HKD psf) $12 - $13
Ever Gain Plaza
Manhattan Centre
Metroplaza Tower 1
Approx. Area (sq ft) 1,700 - 10,800
Approx. Area (sq ft) 8,900 - 15,800
Approx. Area (sq ft) 1,400 - 15,300
Estimated Effective Rent (HKD psf) $16.50 - $18.50
Estimated Effective Rent (HKD psf) $15 - $16
Estimated Effective Rent (HKD psf) $29 - $30
681 Cheung Sha Wan Road, Cheung Sha Wan
838 Lai Chi Kok Road, Cheung Sha Wan
8 Cheung Yue Street, Cheung Sha Wan
7 Cheung Shun Street, Cheung Sha Wan
88 Container Port Road, Kwai Chung
8 Kwai Cheong Road, Kwai Chung
833 Cheung Sha Wan Road, Cheung Sha Wan
kowloon West
kow loo n
Container Terminal 3, Kwai Chung
223 Hing Fong Road, Kwai Chung
Estimated effective rent (HK$ 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 31
others
kowloo n
Hot Listings The Metropolis Tower
10 Metropolis Drive, Hung Hom
Langham Place
8 Argyle Street, Mong Kok
Approx. Area (sq ft) 1,200 - 11,000
Approx. Area (sq ft) 8,600 - 17,400
Estimated Effective Rent (HKD psf) $33 - $37
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) 400 - 10,300
Approx. Area (sq ft) 500 - 11,500
Estimated Effective Rent (HKD psf) $26 - $28
Estimated Effective Rent (HKD psf) $18 - $19
Delta House
Grand Central Plaza
3 On Yiu Street, Sha Tin
138 Sha Tin Rural Committee Road, Sha Tin Approx. Area (sq ft) 700 - 16,800
Approx. Area (sq ft) 1,200 - 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 32 | Colliers International | Moving Times
kow loo n
Recent Leasing Transactions Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
Miramar Tower
10,260 (G)
New Letting
Finance
$37.00
Silvercord Tower 2
11,520 (G)
New Letting
Others
$34.80
China Hong Kong City Tower 5
15,481 (G)
Renewal
Others
$30.00
Chinachem Golden Plaza
10,952 (G)
Renewal
Others
$26.50
Wharf T & T Centre
8,724 (G)
Renewal
Others
$34.50
Rykadan Capital Tower
20,152 (G)
New Letting
Others
$24.00
Millennium City 1 SC Tower
21,449 (G)
New Letting
Others
$25.00
Manhattan Place
20,860 (G)
Renewal
Others
$27.00
AIA Kowloon Tower
19,850 (G)
Renewal
Sourcing
$27.50
Exchange Tower
12,231 (G)
New Letting
Construction / Engineering
$24.60
Trade Square
26,970 (G)
New Letting
Manufacturing
$20.50
Billion Plaza 2
8,164 (G)
New Letting
Others
$23.00
Saxon Tower
8,082 (G)
New Letting
Others
$27.50
Metroplaza Tower 1
6,184 (G)
New Letting
Others
$32.00
Millennium Trade Centre
5,482 (G)
New Letting
Others
$19.00
23,738 (G)
New Letting
IT & T
$30.50
Grand Century Place Tower 2
11,513
Renewal
IT & T
$33.80
Langham Place
8,795
New Letting
Others
$34.90
579 Nathan Road
3,114
New Letting
Others
$25.00
26,370
Renewal
Others
$18.00
TSIM SHA TSUI
kowloon east
KOWLOON W EST
HUN G HOM The Harbourfront Tower 2 MON G KOK
SHA TIN Delta House (G) = Gross
(L) = Lettable
(N) = Net
Colliers International | Moving Times | Page 33
Colliers Internat ional | mar k e t overview
HONG KONG’S
heart
BEAT
Chinese corporates continue to drive the market Hong Kong New Grade A Office Supply 3.0 Net Floor Area (million sq ft)
L
easing activities in Central gained momentum in 2Q 2014, as new rules which allow direct share trading between Hong Kong and Shanghai lured mainland securities, banking and finance enterprises to expand their footprints in Hong Kong. The growth of Chinese corporates in these sectors played a major part in redefining the market, and remained the key driver of demand for office space with many of these firms expanding aggressively. Notable recent leasing activities which are demonstrative of this trend include:
2.5 2.0 1.5 1.0 0.5 0
2010
2011
2012
2013 Kowloon East
2014 F
2015 F
2016 F
2017 F
2018 F
Other districts
Source: HKSAR Government; Colliers
¾ China United Credit Finance (UCF) Asset Management, committed to a new lease of more than 22,000 sq ft in Two Pacific Place, relocating from their existing 3,400 sq ft premise in Hutchison House; ¾ Shanghai Pudong Development Bank took an additional floor of about 13,000 in Bank of America Tower for expansion; ¾ Guosen Securities took a whole floor of about 24,000 sq ft in Two International Finance Centre. The firm will relocate from their existing two premises in Sheung Wan comprising a total of approximately 14,700 sq ft.
Colliers View We project that there will be further demand from second-tier financial institutions as the “ShanghaiHong Kong Stock Connect” materialises and trading volumes gather momentum. Occupier demand remains focused on maximising efficiencies in terms of cost and staff: space ratios. Low vacancy rates and lack of new supply continue to make life challenging for occupiers considering relocation. A common outcome for tenants in Central at present is to renew rather than relocate, on the back of converging rental costs in key sub-markets and a preference to avoid the major capex associated with relocation.
Page 34 | Colliers International | Moving Times
Kowloon East – intensifying rental competition Average Grade A office rents conintue to hover around HK$64 per sq ft per month. Whilst Central experienced a minor firming in rents due to the aforementioned Chinese corporate demand, in contrast office rents in Kowloon East softened by 3% QoQ in 2Q 2014 to HK$35 per sq ft per month.
Colliers View The primary driver for softening rents in Kowloon East is the upcoming new supply. As competition to secure tenants increases, we are witnessing a general trend amongst landlords offering negotiable asking rents and incentives packages. Despite the short-term market volatility, given the limited availability of buildings with large floor plates in the marketplace, Kowloon East will continue to develop and thrive in the long term, capturing demand from tenants with sizable office space requirements (50,000 sq ft or above) as well as those who are cost sensitive. Our research suggests a medium-term supply pipeline for Grade A office space in this sub-market of approximately 4 million sq ft over the next 4 years, which we believe will be met with adequate demand.
Colliers International | mark e t overv iew
20 16
Historical Average: HK$6.4 billion
12 8
Given that most prospective purchasers are seeking higher opportunistic returns, we believe Grade A office yields cannot compress further and expect yields to start softening in the short term. Investors are likely to shift their focus and try to secure assets that will provide opportunistic returns through refurbishment and repositioning of tenants. We anticipate that the market for assets which offer this potential will attract a high level of interest, and that some investors will expand their search for these opportunities to decentralised areas.
1Q 2014
1Q 2013
3Q 2013
1Q 2012
3Q 2012
1Q 2011
3Q 2011
1Q 2010
3Q 2010
1Q 2009
3Q 2009
1Q 2008
3Q 2008
1Q 2007
3Q 2007
1Q 2006
3Q 2006
1Q 2005
3Q 2005
1Q 2004
0
capitalisation and debt serviceability of vendors have enabled them to abstain from selling assets at a discount. The mismatch between vendors and purchasers’ expectations has resulted in a substantial decline in transaction volumes, particularly in the strata-titled sales market.
Colliers View
4 3Q 2004
Total Turnover (HK$ billion)
Hong Kong Office Investment Sales Transactions
Source: EPRC Note: Investment sales transactions with lump sums of HK$30 million or above
Key deal boosts investors’ confidence A significant transaction was recorded in 2Q 2014, with the acquisition of One Bay East – East tower for HK$5.425 billion (HK$10,596 per sq ft) by Citigroup who intend to use the development as an owner-occupier. This deal marks the largest transaction price for an en-bloc commercial development in Hong Kong, with the transaction price being struck at a 20% increase over the previous sale price of the West Tower in the same development, which was sold for HK$4.5 billion (HK$8,790 per sq ft) in April 2013. The sale of this building has driven up the total value of office sales transactions above HK$30 million by 74% QoQ from HK$3.8 billion in 1Q 2014 to HK$6.6 billion in 2Q 2014 – slightly above the long-term average level of HK$6.4 billion per quarter.
Colliers View
Overall Grade A office investment yields hovered at about 2.9% in 2Q 2014, significantly below the long-term average of 4.6%. The higher risks stemming from the combination of a projected rising cost of financing and the compressed yields that the Grade A office market currently offers will add pressure on prices of these assets to adjust. Presently, the sustained low interest rate environment and the strong
9.0% 8.0% 7.0% 6.0% 5.0%
Long-term average 4.6%
4.0% 3.0% 2.0% 1.0% 0.0%
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
Yield rates normalisation
Hong Kong Grade A Office Yield
Yield (% per annum)
Notwithstanding the weakened market sentiment which is a result of additional transactions costs arising from the double stamp duty, long-term investors continue to see Hong Kong as a key business location and remain active in the search for quality premises for their own use or investment purposes. The benefits for Citigroup of consolidating the majority of their operations under one roof are numerous, with an increase in operational efficiencies, potential rental savings and also future certainty of occupancy costs and tenure as a long-term owner-occupier. This strategic investment by Citigroup reflects their confidence in Hong Kong’s office market and furthermore, when viewed collectively with the recent acquisitions in Kowloon East by Swire Properties and Mapletree, supports the continuing transformation of Kowloon East into Hong Kong’s “CBD2”.
Source: HKSAR Government
Colliers International | Moving Times | Page 35
Colliers International Agency Limited Company Licence No: C-006069
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
www.colliers.com
Office Services - Kowloon Unit 6, 16/F BEA Tower, Millennium City 5 418 Kwun Tong Road, Kwun Tong Kowloon Tel: 852 2822 0722 Fax: 852 2117 3311 Email: offices.kowloon@colliers.com