Deutsche Bank abandoned the lease of ICC three-tiered
Foreign banks continue to scale down in Hong Kong. Deutsche Bank, one of the two largest listed banks in Germany, is now renting a 9-storey floor of the International Commerce Centre (ICC) in Tsim Sha Tsui, Kowloon. It will expire in July next year. According to a source quoted by the foreign power source, Deutsche Bank intends to abandon three of them, and even withdraw the relevant floor early. Based on market rent, it is expected to save more than 100 million yuan in rental expenses each year.
Deutsche Bank reached a lease agreement with SHKP as early as 2008, renting 12 floors of ICC 51 to 66 (no 53, 54, 63 and 64 floors), a total of 420,000 square feet, with Morgan Stanley and Credit Suisse is the main tenant of ICC in the early years of occupation. According to a source of information, Deutsche Bank said that the lease period of Deutsche Bank has been 10 years, but it has not used all the space. It is considering abandoning three of them. The landlord has already identified new tenants for the relevant floors through the agency. The building has 35,000 square meters per floor. The three floors involve a total of 105,000 square meters. With the current market value of 85 yuan, the annual rental expenses will be as high as 107.1 million yuan.
The fund policy is 68.05 million US dollars in the center of the unit
According to sources, the landlord has previously introduced the 3rd floor of 51st, 52nd and 55th floors that Deutsche Bank is renting. If there is a large-scale tenant to rent, it can move in before July next year. The market estimates that as Deutsche Bank’s lease expires next year, the bank will relinquish at least the three-story floor once it renews its lease.
It is understood that Deutsche Bank signed the contracted ICC floor in the same year, with a rent of about 45 yuan and a monthly rent of about 18.9 million yuan. However, in 2014, Deutsche Bank returned the 3rd floor of 62, 65 and 66 floors to SHKP. The leased floor has been reduced to only 9 floors.
In addition, the commercial building turned around, the news pointed out that the capital strategy (00497) and related parties just took about 68.05 million yuan, pulled out the 8th floor of the 33rd floor of the Bank of America Center in Central, the building area of 1361 square feet, the price of 50,000 yuan.
The information shows that the site was originally used by a lawyer. It was sold to the capital strategy and related parties for about $53.5 million in October last year. At that time, the price was about 39,309 yuan, which was the lowest transaction since August 2017. The low price of “selling goods", so the profit is only 5 months, the book value appreciation is 14.55 million yuan, but the stamp duty is required when entering the market, so after deducting the tax and agency commission expenses, it is expected to earn nearly 880. Ten thousand yuan.