Goldman Sachs to rent in Causeway Bay Lee Garden Phase 3 5th floor Lease 60 involved more than 90,000 Logistic relocation to provincial rent 30%
Central rents are high, and investment banks have entered the border area. Goldman Sachs just rented the 5th floor of Phase 3 of Xiyu Causeway Bay, a total of 92,000 sq. ft. of floor space, and rented about 60 yuan. It is estimated that 30% of the rent can be saved, and the logistics unit will be moved from the Central to Causeway Bay.
The shortage of new supply in commercial buildings in the Central District of Central District has driven rents to soar, causing many large institutions to move into the border area. According to market sources, a new lease on a brand new commercial building at Lee Gardens in Causeway Bay resulted in a major lease. It involved a total of 5 floors on the 22nd to 27th floors of the property, covering an area of 92,000 sq. ft. and was leased out at approximately RMB 60 per sq. ft. to complete the transaction. The face count is the largest hand rental transaction on Hong Kong Island in recent months.
Group’s core business still stays in the center of Yangtze River
According to the news, the new tenant is Goldman Sachs, an investment bank headquartered in the center of the Yangtze River, which has been renting the multi-storey building for a while. Currently, the Group’s core business is retained in the center of the Yangtze River, while the logistics department, including accounting, is located in the Central District of the same district. center. It is understood that as the Central Center was changed to 40.2 billion yuan last year, it was officially concluded this year, and when new owners or arrangements for resale or re-hire, it is also possible to increase rent, so Goldman Sachs decided to look for local relocation.
According to statistics from the Rating and Valuation Department, the vacancy rate in Central District in January this year was 1.7%, down by 0.2 percentage points month-on-month, indicating that there was almost no building face in Central. According to sources, when considering other regions, Goldman Sachs also studied moving the department to East Kowloon and decided to settle down in the new commercial building in Causeway Bay.
At present, the entire Central Building will be rented from about RMB 90 to RMB 100, while the highest quality building will be listed at RMB 150 to RMB 160. If the rent at the Central Centre is approximately RMB 90 to RMB 100, this time it will be relocated to Causeway Bay. Goldman Sachs is expected to Save about 30% more than rental expenses.
Lee Garden Phase 3 Rental income over 300 million next year
Li Yuan, formerly known as Xinning Building in the third phase, was disassembled and rebuilt in early years (00014) and the project was completed early this year. The Group earlier stated that the occupancy rate of the 3 Phase office building in Lee Garden has reached more than 60%, and it is expected that the rental income will be approximately RMB 300 million to RMB 350 million in the next year, and the occupancy rate can reach over 95%. The project has a total floor area of approximately 462,000 square feet. Tenants including the Maybank Bank of Malaysia rent the 28th and 29th floors. Other tenants include the business center Regus, the Taiwanese Cathay Pacific Bank, and Yongfeng Gold Securities, etc. Now they are awarded 5 floors by Goldman Sachs. The occupancy rate for this building is expected to exceed 80%.
As rents in commercial buildings in Central continue to be high, the market expects rents to increase. Therefore, many foreign-funded institutions have moved out of Central to save rental expenses. Since last year, many non-core areas have recorded large-hand leases. Tenants have moved out of Central, such as Taikoo Place, Taikoo, which is owned by Tai Koo and will be occupied in the third quarter of this year. The project has been pre-leased by a number of internationally renowned brands. Among them, Baker McKenzie, an international law firm, leases five floors, totaling 100,000 square feet, and rents from more than 50 yuan, which is far lower than in Central.