Colliers International - Moving Times August 2014

AUGUST 2014

HONG KONG EDITION

Hong Kong Commercial Real Estate at Your Fingertips

HONG KONG

N WL OO KO

UPS

ere are we h W

? w no

WIN

G

n dow

G N I SW

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