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Elizabeth Horscroft

May Chan

As the newest architectural icon on Hong Kong's skyline rises to new heights, so do hopes that the International Commerce Centre will form the centre of a new thriving financial district.
The first phase of office leasing at what will be the world's third-tallest building is expected to be completed by the end of next year. The International Commerce Centre (ICC) will soar 490 metres above sea level when construction is completed in 2010. So, like Two IFC before it, tenants will be moving in without the final roof over their heads.
For construction industry professionals such as Lo King-wai, deputy general manager of the Sun Hung Kai Real Estate Agency, this is of little surprise.
With office buildings getting that tall, he said it would soon be standard practice for tenants to move in phase by phase as the building's levels rose.
Leasing however, begins at the end of this year with a move-in date for the first tenants set for early next year. Prices for the first 900,000 sq ft will be in line with other prominent Tsim Sha Tsui properties, at an average of HK$35 a sq ft.
The second phase totalling 100,000 sq ft should be completed by the end of 2009.
Sun Hung Kai Real Estate Agency expects a healthy opening and will raise Phase Two prices to roughly HK$42 dollars per sq ft.
The final stage will be completed in 2010 with 1million sq ft. Phase Three prices have not yet been determined.
Those interested in leasing an office on one of the 118 floors will be in good company, as it has been confirmed that Morgan Stanley has leased 10 floors of the ICC to cope with its expansion in Asia. Many other international banks and multinationals have also expressed interest.
'The demand for grade-A quality office space continues to be strong,' Mr Lo said. 'The ICC is only three minutes from Central [by MTR] and we are able to structure creative leasing packages that meet the needs of any prospective tenants.'
Mr Lo declined to comment on the specifics of any tenant's leasing package, but described available packages as innovative and flexible.
'The building's design and large floor plates are flexible and offer state-of-the-art facilities, as well as scalability - which will allow tenants room for expansion, whether in terms of size or technology.'
The gross floor area is about 31,182 sq ft to 38,864 sq ft with a floor to ceiling height of roughly 2.85 metres in Zones One and Two, and 3.15 metres for Zones Three to Five. The span from core to facade is from 11.76 meters to 17.30 metres.
But Mr Lo said it was hard to predict how businesses would react.
'Whether our specification will truly be appreciated by tenants will be seen in the prevailing leasing levels when we begin to market the space, and time will tell,' he said.
Contributing to the potential leasing success is the fact that prices in the ICC are substantially lower than in Central, where rates are around HK$125 per sq ft in buildings such as Two IFC and Exchange Square - but that's if you can find available space. Estate agents said the long waiting list for office space in Central was a main factor why they believed the expansive 2.5 million sq ft of ICC office space posed little threat to the importance of Central as a preferred location.
But for large companies  wanting to expand, such as Morgan Stanley, finding the space to do so conveniently within the same building in Central was a challenge. It is not uncommon for an investment bank to have human resources in one building and  the trading floor in an adjacent building. Business is not hindered, only slightly inconvenienced. Perhaps the who-gets-the-corner-office debate is also better settled by moving the entire company to the unobstructed harbour-view offices at the ICC.
There is some hope that the unique factors surrounding the ICC's development will raise West Kowloon to the stature bestowed to London's Canary Wharf, after the latter's transformation from a dilapidated and forgotten stretch of docklands to the address of choice for the city's financial power brokers.
'Similar to Canary Wharf in London and Roppongi Hills in Tokyo, we have created a standalone environment that incorporates a grade-A commercial building, service suites, six-star hotels, a 1million sq ft shopping mall and world-class amenities, though clearly we cannot compare property prices in London with property prices in Hong Kong.'
The possibility that West Kowloon could be the next address of choice for posh headquarters with matching nightlife and leisure attractions is unfathomable to some. Yet the next new scene for those who must see-and-be-seen is not really that far from one's imagination.
The ICC sits on a transportation hub with direct connections to the airport and the ferry terminal to the mainland and Macau. Mr Lo  said its location above Kowloon MTR Station  provides the ICC with a quicker connection to the airport than from Central.
In fact, it may be a matter of why go to Lan Kwai Fong, a favoured playground of young bankers, when it has already come to you? Many of the bars and restaurants located in Elements,  the city's largest shopping mall, are outlets of that neighborhood's favourite watering holes.
Visitors will find five-star accommodation at the Ritz-Carlton Hotel, located on the top floors of the ICC, or, they can opt for the WHotel next door in one of The Cullinan towers. Long-staying executives can lodge in serviced suites in The HarbourView Place, also located at The Cullinan.
Mr Lo said he believed that the ICC could meet the demands of a business located in an international grade-A office space, at a fraction of the cost, without ever setting a foot outside of Union Square.
Services offered by the ICC's building management, listed on its website, include free spectacle cleaning and mobile-phone charging, really little different from what similar building managements can offer.
'The list of services, materials or technology that a developer or a management company uses and can offer is unlimited these days. However, prospective tenants do not base their final choice on these services alone,' Mr Lo said, adding that relationship building with tenants and  accommodating them in the best possible way was important.
And the ICC is planning to cater for many tenants, and though the exact number  is not yet known, the potential is huge.
There will be 30 21-person local passenger lifts in five zones, 14 shuttle lifts to eight zones and two VIP lifts.
ICC by numbers
First phase of office leasing begins  by the end of this year
Two million sqft in total with 118 floors
Third tallest building when completed
HK$35 per sqft approximate price for Phase One
HK$42 per sqft approximate price for Phase Two
Phase Three prices have not been determined



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