Hongkong Land signs up new tenant at Chater House

Franklin Templeton Investments (Asia) has emerged as another major tenant of Chater House in Central, taking up 18,397 square feet of grade-A office space from Hongkong Land.

Raymond Chow, executive director of Hongkong Land, said the deal reflected a continuing demand for world-class offices in prime locations, quality management and competitiveness.

Estate agents said Hongkong Land had offered some sweeteners, effectively representing a rent reduction, to lure its new tenant.

Mr Chow did not comment on the rental.

Estate agents said there was fierce competition for tenants among landlords of grade-A office space as ample new supply was coming on stream.

Two International Financial Centre, comprising 1.46 million sq ft of net office space, due to be completed next year, is being seen as a major new competitor of Chater House.

Mr Chow said Franklin Templeton Investments would consolidate its various local operations, now spread across a number of offices, on the 17th floor of Chater House from February. The move followed a review of the company's operational requirements and options in Central.

The commitment by Franklin Templeton, one of the world's largest investment management organisations, demonstrated that customers saw the benefits of moving into world-class and well-managed offices in prime locations even in today's challenging business conditions, he said.

'Since the beginning of the year, Hongkong Land has secured close to 50 new office tenants for its Central portfolio,' he said.

'Our emphasis on professionally meeting our customers' needs and providing high-quality services pays off, especially in competitive markets.'

Country head of Franklin Templeton Investments, Jed Plafker, said: 'We saw compelling reasons for relocating and consolidating our Hong Kong operations, and we selected Chater House because of its excellent location, its world-class design and facilities that allow for highly efficient use of space and maximum flexibility in services.'

Jones Lang LaSalle, the agent which handled the transaction, said the deal reflected revived demand from leading financial institutions for grade-A office space in Central.

United States financial giant JP Morgan signed on as Chater House's anchor tenant in October last year, signing a 10-year agreement for the top 11 office floors.

JP Morgan is paying more than HK$60 per square foot a month for a total of 207,000 sq ft.

Chater House, Hongkong Land's latest office development, has a gross floor area of 498,000 sq ft, with 86 per cent efficiency.

It includes 81,000 sq ft of retail space.

Hongkong Land is Central's biggest office landlord. The company owns about five million sq ft of commercial properties there, of which about 95 per cent is occupied.

MOVING IN

The Chater House deal reflects a continuing demand for world-class offices, according to Hongkong Land

Lease commitment follows a review of the company's operational requirements

ncG1vNJzZmivp6x7tK%2FMqWWcp51krrPAyJyjnmdkZX1zhZNon6iml6C8r7OMpZinnF2otqi60malnq9dqbKvrc2tZJygkamys3nHqKysnQ%3D%3D