Hongkong Land banks on F&B tenancies, Michelin-starred restaurants in Central properties to counter soft market, rising competition

The group has F&B tenants operating six Michelin-starred restaurants within its retail assets in Central, executive director Chow says

Future competition for office and retail tenants may shift to a harbourfront site being developed by rival Henderson Land

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Hongkong Land executive director Chow hosts a media tour on the new F&B outlets in Central. Photo: K. Y. Cheng

Published: 8:15am, 22 Dec 2021Updated: 11:09am, 22 Dec 2021

Hongkong Land is taking steps to enhance the appeal of its office and retail properties in Central, with competition set to intensify with new developments in the city’s central business district in the coming years.

The biggest landlord in the city’s financial district has opened 45 restaurants since 2020 at properties in its portfolio, as well as launched an online leasing platform to help improve take-up rate in the wake of changes in the city centre.

The company, founded in 1889, owns 4.84 million sq ft of prime office and retail properties in Central, including 11 grade A office buildings such as Landmark Prince’s, Chater House and Exchange Square that house key tenants like JPMorgan Chase and bourse operator Hong Kong Exchanges and Clearing.

A prime harbourfront site in Central, sold by the government last month for a record of HK$50.8 billion (US$6.5 billion), could become the future star attraction and lure tenants. Henderson Land, the winning bidder, intends to spend HK$63 billion to develop the plot into a city landmark.

“We look at the whole portfolio to improve the ecosystem”, Chow says. Photo: K.Y. Cheng

“I used to say you can do 12 meetings a day within our portfolio [given their proximity], and now 13 meetings with our dining facilities,” executive director Raymond Chow said. Having trendy food and beverage (F&B) facilities shows that corporate tenants “operate in a prestigious portfolio and helps them to attract talent”, he said.