Planning is under way for the combined redevelopment of Sunning Plaza and Sunning Court in Causeway Bay into a mixed-use office and retail complex, Hysan Development said yesterday.
The project was expected to be completed by around 2018, said company chairman Irene Lee Yun-lien.
The company said the redevelopment of Sunning Plaza and Sunning Court was mainly to cater for the creation of offices for tenants who were moving out of Central and to make sure there was enough space to deal with future demand.
In a study published last year, property consultancy Jones Lang LaSalle reported that grade A office rents in Central dropped 11.2 per cent from the previous year. Rental levels for Causeway Bay were relatively stable, with an increase of 2 per cent.
The company expected the redevelopment of Sunning Plaza and Sunning Court to bring about a 25 per cent increase in gross floor area.
Hysan's deputy chairman and chief executive Lau Siu-chuen said: "For Hysan Place, in view of the limited supply of grade A office space in competing core localities in the next years, we shall continue to balance occupancy with tenant profile, enhancing the positioning of our portfolio."
The top four industry groups in Hysan's tenant mix were insurance, professional and consulting services, banking and finance, as well as high-end retailers, with no single category taking up more than 20 per cent of the lettable area.
Hysan recorded turnover of HK$2.49 billion last year, up 29.3 per cent from HK$1.92 billion the previous year. Rents paid at the Hysan Place shopping centre in Causeway Bay, which opened in August last year, contributed HK$431 million to turnover. Excluding Hysan Place, the like-for-like turnover increase would have been 6.9 per cent to HK$2.06 billion.
In the retail division, Hysan Place's opening pushed the company's retail revenue up by 58.4 per cent.
"Hysan Place has increased our retail portfolio space by 50 per cent and balanced our overall commercial property portfolio," Lau said.
The company's annual report said that after the opening of all anchor tenant shops at the development by December last year, the last month of the year saw an average daily flow of about 83,000 visitors, with peak days hitting 100,000.
Earnings per share for last year grew 23.3 per cent to HK$152.83. A full-year dividend of 95 HK cents per share was proposed, up 20.3 per cent from the previous year.Topics: Hysan Development Retail Properties Commercial property Office Causeway Bay Redevelopment Hong Kong Property