Prudential Hong Kong Expands Headquarters Footprint

Prudential Hong Kong has signed a lease with Swire Properties to occupy roughly 83,000 sq ft across One Taikoo Place and One Island East. The move consolidates the insurer’s operations and represents a double-digit percentage increase in floor area relative to its existing space at Taikoo Place, where it has been a tenant since 2011.

South China Morning PostPrudential Expands Hong Kong Headquarters South China Morning Post

The expansion occurs as Hong Kong’s office market shows renewed vigor. Net absorption reached 313,000 sq ft in July, driven primarily by financial institutions, banks and professional-services firms. Vacancy rates fell to a 31-month low of 12 percent overall, with most districts seeing further declines.

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Simultaneously, mainland Chinese authorities have intensified scrutiny of offshore asset returns earned by their residents. Beijing clarified that the 20 percent personal-income-tax on gains from offshore insurance policies is not a new rule and is not specifically aimed at Hong Kong insurers. The regulatory backdrop has prompted industry observers to watch how insurers position themselves in the city.

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Tim Blackburn, chief executive of Swire Properties, noted that the lease aligns with the developer’s HK$100 billion investment plan to keep Taikoo Place “well-connected and amenity-rich.” Don Taylor, director of office at Swire Properties, said Prudential’s move further strengthens Taikoo Place’s status as an insurance hub, contributing to the district’s 90 percent occupancy rate.

Prudential Expands Hong Kong Headquarters South China Morning PostSouth China Morning Post

• Total new lease area: ? 83,000 sq ft.

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• Office vacancy rate city-wide: 12 percent (31-month low).

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• July net absorption: 313,000 sq ft, led by financial and professional-services firms.

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• Swire Properties’ portfolio occupancy: 90 percent.

Prudential Expands Hong Kong Headquarters

• “As part of our HK$100 billion [US$12.75 billion] investment plan, we will continue to invest in Taikoo Place to ensure it remains a well-connected and amenity-rich global business district,” — Tim Blackburn, Swire Properties chief “As part of our HK$100 billion [US$12.75 billion] investment plan, we will continue to invest in Taikoo Place to ensure it remains a well-connected and amenity-rich global business district,” — Tim Blackburn, swire properties chief

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• “Hong Kong’s office leasing market gained further momentum in July, with net absorption reaching 313,000 sq ft,” — Sam Gourlay, head of office leasing advisory at JLL in Hong Kong “Hong Kong’s office leasing market gained further momentum in July, with net absorption reaching 313,000 sq ft,” — Sam Gourlay, head of office leasing advisory at JLL in Hong Kong

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