UBS SET TO RELOCATE TO WEST KOWLOON
Swiss bank will become first anchor tenant at SHKP development in 2026, bucking trend in office property sector of returning to Central
UBS has said it will lease 250,000 sq ft of office space in the tallest tower of the West Kowloon terminus project, a cluster of commercial buildings scheduled for completion in 2025.
The Swiss investment bank becomes the first anchor tenant at the Sun Hung Kai Properties (SHKP) development and plans to relocate the staff from its four current office premises to the new space in 2026, according to Amy Lo, co-head of wealth management for Asia-Pacific.
The planned move bucks the trend in the office property market where companies are moving back to Central and other districts that are seen as prime business zones.
It is likely the rent for the new space is about half that paid by tenants at the International Finance Centre (IFC), where one of UBS’ offices is located now, according to an analyst.
“We are excited to be moving to the workplace of the future with state-of-the-art infrastructure that brings together and empowers all of our UBS colleagues in Hong Kong under one roof,” Lo said.
“The office will be built for our purpose and we believe it will improve productivity, collaboration and well-being for our colleagues.”
Its location should help UBS connect with nearby mainland cities, she said.
SHKP paid HK$42.2 billion, a record at the time, for the huge plot of land in West Kowloon in 2019. Once completed, it will provide 2.6 million sq ft of office space split between two towers and some 600,000 sq ft of retail space in a shopping centre.
UBS currently has offices at Two IFC in Central, as well as in Sheung Wan and Tsim Sha Tsui, according to a spokeswoman. At IFC, which is partly owned by SHKP, it occupies six floors.
The location of the future UBS office will make it convenient for staff to shuttle back and forth between Hong Kong and the mainland, as the West Kowloon Station is the terminus and the only station on the Hong Kong section of the GuangzhouShenzhen-Hong Kong Express Rail Link.
“We are proud to have UBS as our first anchor tenant of this unique project,” SHKP chairman and managing director Raymond Kwok Ping-luen said.
“Not only is their long-term commitment a ringing endorsement of West Kowloon as an integral part of the city’s central business district, but also a clear vote of confidence in Hong Kong as a key international financial centre when the global economy is facing multiple challenges.”
Vincent Cheung, managing director of Vincorn Consulting and Appraisal, said: “At IFC, rents are about HK$150 to HK$200 per square foot per month. The cheapest is about HK$120.
“The rents on offer [in West Kowloon] must have been very attractive to entice a renowned organisation like UBS away from Central to be the anchor tenant of the building.”
James Mak, a sales director at broker Midland Commercial, added: “The first anchor tenant usually gets an extra discount, and the rent could be as low as HK$40 to HK$45 per square foot.”