AdvertisementHong Kong propertyBusinessFinancial firm Ares doubles Hong Kong office footprint as real estate outlook improves
Rents for prime offices in Central could rise up to 5 per cent, according to JLL, while Knight Frank expects a gain of as much as 8 per cent
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Ares Management, one of Asia’s largest alternative investment managers, is doubling its real estate footprint in Hong Kong, a move that aligns with a broader expansion by financial firms and demand for office space in the core Central business district.
The Los Angeles-based asset manager would add about 12,500 sq ft of space in Gloucester Tower, where it has been a tenant since 2017, according to a statement from the landlord Hongkong Land on Monday. The new lease will be effective in March.
“We are delighted that Ares has chosen to expand in Hongkong Land’s Central portfolio, underscoring our position as the location of choice for financial services firms as we provide an unparalleled community of innovative services, world-class amenities and superb connections for our tenants,” said Neil Anderson, director and head of office and commercial property at the largest commercial landlord in Central. “The broader flight to quality trend solidifies our leading position in building experience-led city centres.”
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As of June, banks and financial services firms accounted for 42 per cent of all office tenants, making them the biggest category in the developer’s Central portfolio, according to Hongkong Land.
Hong Kong’s prime office property segment was poised for better fortunes this year as leasing activity increases and new supply eases, according to analysts.
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Last year, overall office rents in the city fell 2.9 per cent from a year earlier, the least since 2019, according to CBRE. Rents in Central were broadly flat, while Tsim Sha Tsui recorded growth of 2.9 per cent, it added.
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