UBS move to West Kowloon reshapes demand in Hong Kong office market
The Swiss bank says the move will strengthen links to mainland China and Greater Bay Area clients
As UBS consolidates its Hong Kong operations in West Kowloon to deepen mainland-linked growth, it does so at a time when Hong Kong’s office market is showing tentative signs of recovery in prime districts such as Central.
The consolidation is set to release office space in Central, contributing to a reshaping of demand as hedge funds and other financial firms take up space vacated by banks.
The Swiss bank on Tuesday marked the handover of UBS Tower at the International Gateway Centre (IGC), a 14-storey, 460,000 sq ft grade A office building developed by Sun Hung Kai Properties above the West Kowloon high-speed rail station.
UBS plans to begin moving into the building from the fourth quarter, bringing together staff currently spread across five offices, including Two IFC and One Peking Road.
While the move is a high-profile endorsement of the project, IGC also adds about 2.6 million square feet of new office space to a market still grappling with elevated vacancy, increasing near-term pressure even as leasing activity improves in core locations.
“This is a new chapter,” said Amy Lo, chairman of UBS Global Wealth Management Asia and CEO of UBS Hong Kong.