Hong Kong developer H Development seeks medical services providers to lease its purpose-built tower in Causeway Bay
- H Development Holdings has invested HK$600 million (US$77 million) in Health Aura at 9 Keswick Street in Causeway Bay
- The tower has been built in accordance with medical specifications, with space dedicated for MRI centre
The company has invested HK$600 million (US$77 million) in Health Aura on Keswick Street, which has a gross floor area of 30,000 square feet. The redeveloped property, which is about a five-minute walk from St Paul’s Hospital, will be available for lease soon.
The tower has been built in accordance with medical specifications all the way down to its sewage systems. The ground floor is specifically designed for a Magnetic Resonance Imaging (MRI) centre based on guidelines from medical-equipment maker Siemens Imaging Systems.
The company has a portfolio worth HK$20 billion in Hong Kong, comprising five completed commercial buildings and another three under construction. Five of the eight buildings are located in Causeway Bay, including the recently completed 25-storey grade A commercial tower, HDH Centre, on Irving Street.
Analysts said demand for wellness and health care services from locals and mainland visitors, especially routine check-ups and screenings for cancer, are likely to grow in the coming years due to an increasingly greying population. Figures from Hong Kong government show that the share of city’s population aged 65 or above will increase from 19 per cent in 2020, to 31 per cent in 2039, and 34 per cent in 2049.
CBRE forecasts that medical centres will require of one million sq ft of commercial space from 2019 to 2022.
“Hong Kong’s tourism will transform to health care over the next several years from purely shopping as shoppers gradually shift to online shopping,” said Martin Wong, head of research and consultancy in Greater China at Knight Frank.
“Operators of high-end medical group will opt for bigger spaces,” said Wong, adding Health Aura’s 30,000 sq ft space should be sought after.
He said that a growing number of landlords were increasingly offering commercial space to medical tenants.
In Tsim Sha Tsui, Henderson Land Development’s H Zentre, opposite Sheraton Hotel, has purpose-built systems and facilities for medical service providers. The tower has a mix of wellness and retail services providers.
“We will offer long lease terms to medical tenants who invest heavily in their clinics,” said Thomas Wu, chief executive of H Development.
A five-year fixed term plus the option of another five years will allow tenants to maximise the use of expensive equipment, he said, adding that the normal market practice is for landlords to offer a fixed-term lease of two years with an option for another two.
H Development is optimistic about Hong Kong’s office and retail market, noting that the government’s long-term, multitrillion-dollar infrastructure development plans, such as the Northern Metropolis and Lantau Tomorrow Vision, will create the city’s next housing and business hubs.
“It will create ample job opportunities bringing more people to Hong Kong,” said Wu.
“With more Chinese companies seeking to list in Hong Kong means more demand for office space. The next 10 years will be a golden era for Hong Kong.”
