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SCMP Reporter

THE move of NatWest Markets from Exchange Square to Times Square in Causeway Bay marks the first time a major corporate and investment bank has been forced out of the prime site due to lack of space and high rental.

  Central, long considered the golden territory for banks, can no longer accommodate those that are keen to expand their businesses, say top players.

  ''We want to increase our office space to include a few contiguous floors, but there aren't many choices in Central,'' said Philip Deer, regional managing director of NatWest Markets, the corporate and investment banking arm of the National Westminster Bank group.

  ''Very few new buildings were completed in the last few years and the New World Tower will take some time before it can be rented out. The new offices in Wan Chai and Admiralty are almost full,'' he said.

  Bankers were finding it hard to find room for growth, he said.

  NatWest decided to relocate its Hong Kong branch and Asia-Pacific headquarters to Tower A of Times Square and obtain the naming rights to the tower.

  The group's private banking arm, Coutts & Co, will remain in Exchange Square.

  While NatWest would take more space in the new office, the total rental was significantly lower than in Exchange Square, Mr Deer said.

  He expected the move to start a trend in the financial community, as there were no new office buildings coming on-stream.

  While retail banks have moved their back office operations to less expensive sites, wholesale banks have been slow in making the move because they require less space.

  But NatWest's move highlights the concerns among cost-conscious bankers as they evaluate whether they need expensive prime sites.

    ''Before we made the decision, we thought seriously about whether moving to Causeway Bay would handicap our business development. Our conclusion is no,'' Mr Deer said.

  Other banks were considering new buildings in Tsim Sha Tsui, he said.

  Meanwhile, NatWest Markets is to beef up its treasury and capital market capabilities in response to the rapid growth in Asia.

  ''We aim to provide a family of products for the foreign exchange and money markets,'' Mr Deer said.

    The bank's services include fund management, corporate banking, structured and specialised finance, investment services, equity and corporate finance.



NatWest breaks ground with Times Square move