Pioneer Global markets Kwun Tong offices from first industrial conversion
Firm leases offices in Kwun Tong after spending HK$240m converting building
Hong Kong-listed Pioneer Global has begun leasing for a commercial building that marks its first industrial property conversion, in a bid to tap the market before an expected increase in office supply in Kwun Tong in the coming years.
"There will be a lot of supply in Kwun Tong. Even though some of the offices will be owner-occupied, the new supply could still add to pressure on rents," said Edward Law, head of asset management at Pioneer Global. "We are lucky in terms of timing."
According to property consultants, more than two million sq ft of office space will be added in Kwun Tong between 2015 and 2018.
Pioneer Global is putting on the leasing market its 10-storey Pioneer Place, at 33 Hoi Yuen Road. It is the firm's first revitalisation scheme, converting the building from industrial use.
The company spent HK$240 million on the conversion, which now provides a total gross floor area of 230,000 sq ft. It completed the building works in August.
Law said the company had leased 50,000 sq ft at between HK$23 and HK$25 per square foot, a steep step up from the average rent of HK$7 per square foot before the conversion.