Restaurants pay top rents for spot in Causeway Bay's Ginza-style project
Soundwill's latest project in Causeway Bay expected to cost tenants HK$100 psf per month
Rents at Soundwill's new "Ginza-style" commercial project, Soundwill Plaza II - Midtown, in Causeway Bay had set a record for restaurant tenants in the city's busiest shopping district, market sources said.
Five restaurants have committed to lease six of the 31 storeys - the top five floors and the third floor. Each has a balcony.
The rents average HK$100 per square foot per month, 10 per cent higher than the HK$90 per square foot that similar tenants are charged at Russell Street, the most expensive retail strip in the world.
The HK$1 billion project, to be completed in the third quarter, is at 1-29 Tang Lung Street, which runs parallel to Russell Street.
Vivian Chan, an executive director at Soundwill, declined to disclose the rents but said the company expected to generate about HK$180 million a year in rental income from the project once all the space was leased.
"Our tenants can stay open 24 hours a day if they want to, as the building has individual air-conditioning facilities to cater for flexible trading hours," she said.
Chan said the company spent nearly 10 years assembling the site for the redevelopment project, which will yield a gross floor area of 217,000 sq ft.
"As Soundwill Plaza II - Midtown is a new Ginza-style building with modern facilities, the rents will be more expensive than existing retail spaces" in the area, a property consultant said.
Chan said discussions with potential tenants were under way for 35,000 sq ft of space covering the ground level and first and second floors.
"We have received more than 300 inquiries from interested parties, such as international fashion brands, since the building was offered for lease on the market," she said.
The company released the details of Soundwill Plaza II - Midtown a week after it had raised HK$1.5 billion from the sale of another commercial project, The Sharp, on Sharp Street, a block away from Times Square.
All the 29 shopping units were snapped up by investors at the launch on January 3, with the price averaging HK$33,576 per square foot. The unit that fetched the most is on the top floor with a roof. It sold for HK$80.47 million, or HK$48,100 per square foot.