Project Details
Client: HKEX
Location: Hong Kong
Topline: HKEX Group had an office portfolio spread across five locations in Greater Central, each with different lease expiries. The client approached CBRE to source around 200,000 square feet of office space to consolidate their operations under one roof.
The Challenges
CBRE conducted an extensive search of all available office buildings for sale in Central with an area of approximately 200,000 square feet. The team were quick to identify 50 Connaught Road as the most suitable option for HKEX. Unfortunately, the building was sold before any decision was made.
CBRE continued monitoring other suitable options in Central and new sites tendered by the Government. The task was challenging as it was difficult to find a single building in the area that could meet HKEX’s different requirements.
With the market lacking suitable purchase options, CBRE advised HKEX to consider a lease instead. The team continued their thorough search of the market, evaluating different leasing options for the client.
Solution & Outcome
CBRE was relentless in its search for options, presenting different scenarios for HKEX to consider.
When floors in One Exchange Square became available, the team recognized an opportunity to create more space for HKEX by working closely with the landlord.
CBRE devised a strategy where HKEX could move into the premises in phases through an open market rental agreement.
CBRE’s negotiation skills earned the landlord’s confidence in HKEX’s lease proposal.
The transaction marks the largest open market leasing transaction in Central in the last 10 years.
CBRE’s solution met all of HKEX’s requirements, including the security of a long, flexible lease and expansion rights.
HKEX is now well positioned in One Exchange Square, a high profile building in the heart of the CBD.
CBRE generated rental cost savings of over 25%.
CBRE succeeded in renewing HKEX’s Trading Hall lease.
HKEX converted the Trading Hall into an exhibition hall with a designated area for public listing ceremonies, press conferences and other public events. To facilitate the new function of the Trading Hall, CBRE successfully convinced the landlord to extend the car park lift into the Trading Hall so VIPs of HKEX could have direct access.
The milestone transaction by the top-class organization reflects confidence in the performance of the Hong Kong financial market locally, regionally and globally.
CBRE negotiated signage rights for HKEX, convincing the landlord to convert the façade. By building a digital billboard at the main entrance of Exchange Square for real-time financial news and index broadcasts, the space will become a new landmark in Hong Kong.
CBRE has successfully assisted HKEX to negotiate the best leasing terms, especially with Hongkong Land for our new lease of office floors at Exchange Square. CBRE has provided professional and innovative advice for the re-structuring of various HKEX's leases so that we can achieve large rental savings.
