United States investment bank Goldman Sachs is expected to become a leading tenant in Hutchison Whampoa's Cheung Kong Centre, ending a bitter competition for the business with Great Eagle Holdings.
The tenancy agreement is on the verge of being secured after exceptionally generous terms were thrashed out during months of negotiation.
The tenor for negotiations has been set by the continuing deterioration of the Hong Kong economy, which has coincided with a flood of high-quality commercial property coming on to the market.
Goldman Sachs is expected to take five floors in the Cheung Kong Centre, which is still under construction.
The bank would vacate Great Eagle's Citibank Plaza when its contract for offices in the twin-tower building expired next year, a market source said.
Hutchison was said to have offered Goldman Sachs a 2.5-year rent-free period in a lease for nine years, resulting in an effective rent of $35 to $38 per square foot per month, substantially lower than Central's average rent of about $50 per square foot.