Securing Their Roots: HKEX and SFC's Property Moves in Hong Kong
HKEX to purchase office and retail space valued at approximately US$812 million in Exchange Square, securing a permanent headquarters location.
In a notable turn of events, Hong Kong Exchanges & Clearing (HKEX) has reached an agreement to splash out HK$6.3 billion (approximately US$812 million) for prime real estate in One Exchange Square and related assets in Central, the city's bustling business hub [1][2][3]. This monumental commercial property deal marks one of the biggest transactions in the city over the past two years.
Here's the lowdown: HKEX plans to nab the top nine floors and some retail space on the podium of One Exchange Square, aiming to transform the 147,025 sq ft property into its headquarters. The company has called this site home for close to four decades so far. To bolster its resilience against property cycles, HKEX will also ink new long-term leases for several occupied floors in Two Exchange Square, employing a hybrid buy-and-rent strategy [1][2].
Speaking on the matter, HKEX's Chairman, Carlson Tong, expressed enthusiasm, saying, "We're thrilled to be embarking on the next phase of HKEX's odyssey at Exchange Square, as we unveil our strategic plan to set up a permanent abode here." Reflecting on Hong Kong's transformation into a global financial powerhouse, Tong added, "Exchange Square has been privileged to witness this incredible metamorphosis of the Hong Kong capital market" [1].
Meanwhile, the Securities and Futures Commission (SFC) set its sights on a different prize, committing HK$5.4 billion to securing floors at One Island East in Quarry Bay in November 2023. Unlike HKEX's transaction, SFC's move does not interfere with HKEX's decision, as both are separate strategies to secure permanent bases in distinct locations [2].
These property moves by key financial players like HKEX and SFC highlight Hong Kong's allure as a beacon for financial institutions, underscoring the city's significant role as a critical financial center. The desire to put down permanent roots in the city further reinforces Hong Kong's standing as a sought-after destination for financial heavyweights [4].
[1] - https://www.scmp.com/business/companies/article/3136704/hong-kong-exchange-to-pay-6-3bn-office-space-one-exchange[2] - https://www.reuters.com/business/finance-regulation/hk-securities-regulator-to-move-quarry-bay-one-island-east-2023-12-01/[3] - https://www.bloombergquint.com/business/hkse-to-buy-office-space-in-one-exchange-square-for-approximately-us-812-million[4] - Enrichment Data section for additional insights into the background, significance, and impact of these transactions.
- The monumental commercial property deal where HKEX agreed to invest around $812 million for real estate in One Exchange Square will likely mark one of the biggest transactions in Hong Kong's real estate sector over the past two years.
- To ensure its resilience against property cycles and secure a permanent home, HKEX will lease several occupied floors in Two Exchange Square, employing a hybrid buy-and-rent strategy.
- The Chairman of HKEX, Carlson Tong, expressed excitement about the company's plan to transform the One Exchange Square property into their headquarters, stating that they are thrilled to embark on the next phase of HKEX's journey there.
- In a separate move, the Securities and Futures Commission (SFC) agreed to spend HK$5.4 billion to secure floors at One Island East in Quarry Bay in November 2023, as they set their sights on a different prize to establish a permanent base in that location, independent of HKEX's decision.
- These property moves by financial heavyweights like HKEX and SFC demonstrate Hong Kong's appeal as a hub for financial institutions, strengthening its role as a critical financial center and reinforcing its status as a sought-after destination for business and investing.
