Winsor upbeat on Kwun Tong complex
Winsor Properties Holdings, a mid-sized Hong Kong-listed developer, expects that its Landmark East office complex in Kwun Tong will benefit from companies moving out of Central amid rising rent in grade A offices.
Despite market expectations that rising supply in non-core business areas such as Kowloon East will put pressure on rent, Winsor Properties managing director John Chow Wai-wai remains upbeat, saying that financial institutions are interested in moving their back-office units to the International Commerce Centre at the Kowloon Station.
'We [landlords in non-core business areas] are waiting for the turning point in which tenants in Central consider moving out once the rising rents reach their [budget] limits,' he said.
Winsor Properties invested HK$500 million to develop Landmark East, which is scheduled for completion in mid-2008. It plans to lease the offices in the first half of this year. The complex is the only fully owned development project of Winsor Properties and will be its major revenue source from 2009.
Increasing new office supply in Kowloon East could help convert the industrial district into a new commercial district, Mr Chow said.
According to CB Richard Ellis, Kwun Tong will provide new office supply of more than 2.6 million square feet over the next four years.
Mr Chow said Landmark East would target multinational firms and local major companies in the first stage of leasing. The second stage will target tenants in Kowloon East looking to upgrade. He declined to disclose the asking rents of the office.
The project, located at the junction of How Ming Street and Tsun Yip Street, comprises 40- and 43-storey office buildings with a total gross floor area of more than 1.2 million sq ft.