Tagged: ECO

Government Ministers, Business Leaders and Economists Confirmed for Cambodian Investment Conference

PHNOM PENH, Cambodia, Aug. 27, 2014 /PRNewswire/ — Agriculture, manufacturing, banking and real estate will be among the key business sectors to be discussed at the upcoming International Business Chamber of Cambodia (IBC) Investment Conference.

The conference will bring together senior government ministers, top economists and business leaders in Phnom Penh on October 6th and 7th.

Cambodia’s Prime Minister H.E. Samdech Akka Moha Sena Padei Techo Hun Sen will deliver the conference’s opening address on the morning of October 6th.

The keynote speech will be delivered by Donald Kanak, the chairman of Prudential Corporation Asia — which is a leading sponsor of the conference.

Two major panels will follow the opening address and the keynote speech, both moderated by the renowned Wall Street Journal columnist Andrew Browne.

The first panel will look at Cambodia’s Economic Outlook and will feature Eric Sidgwick, senior country officer at the Asian Development bank (ADB), the International Monetary Fund’s (IMF) Cambodia representative Ahmed Faisal and Dr. In Channy, CEO of ACLEDA Bank who is also the Vice Chairman of the IBC and the chairman of the conference’s organising committee.

Another panel at the conference will discuss Cambodia’s Economic Advantage.

“The speakers and moderators list for the conference is looking very exciting and I am delighted to see the calibre of those who will be present for these important discussions,” says Dr. Channy.

“There are a number of government ministers already in attendance and we are expecting more to confirm in the coming days and weeks,” says Dr. Channy.

Government ministers attending the event will include Cambodia’s Minister of Commerce H.E Sun Chanthol, Education Minister H.E. Hang Chuon Naron and Minister
 of Posts & Telecommunication (MPTC)  H.E. Prak Sokhonn.

IBC Chairman Bretton Sciaroni, senior partner at Sciaroni and Associates, will chair a break-out discussion on Cambodia’s Legal Landscape for Investors which will feature Senior Minister H.E. Mr. Om Yentieng, Chairman of Cambodia’s Anti-Corruption Unit.

“This will be one of the most important discussions at the conference — with investors constantly monitoring the political and legal situation in Cambodia as they make their investment decisions. The recent political breakthrough will be a big boost for investors who want to see similar breakthroughs in the legal landscape,” Mr. Sciaroni says.

Platinum sponsors for the IBC conference are Prudential Cambodia, Jardine Matheson Limited, Sciaroni and Associates, ACLEDA Bank and ANZ Royal. Gold sponsors include DFDL and Ezecom.

The South East Asia Globe and its sister publication Focus ASEAN are media partners of the event.

Those wishing to register for the IBC Investment conference should visit the IBC’s website at www.ibccambodia.com.

Media Contact:

Julian Rake
+855-12324283
julian@quantumpublicity.com

Policymakers Warned of Persistent Risks as Accountancy Bodies Publish Five-year ‘Health Check’ of the Global Economic Recovery

HONG KONG, Aug. 21, 2014 /PRNewswire/ — Threats to long term economic stability remain as countries recover from the global economic crisis, according to a five year review of finance professionals’ economic insights.

Any recovery may also be limited to just a few “islands of financial stability”, report author Manos Schizas, Senior Economic Analyst at ACCA (the Association of Chartered Certified Accountants), has warned.

This is one of a number of worrying conclusions, based on a five year review of the ACCA/IMA (Institute of Management Accountants) Global Economic Conditions Survey, the largest economic survey of accounting professionals in the world.

The two bodies claim that the financial crisis and global recession have now fragmented into multiple unresolved issues – including damaged bank and government balance sheets, unconventional economic policies, political polarisation and geopolitical tensions. These are, by and, large, still present five years on, despite a growing ‘recovery consensus.’

In particular, the review highlights how, since mid-2012, business confidence gains have been much stronger in the financial sector than among the world’s SMEs and large corporates. While conceding the benefits of stronger banks on business investment, it warns of a growing imbalance fuelled primarily by central banks.

Manos Schizas said, “A recovery which is confined to the financial sector is not sustainable and policymakers need to start asking hard questions about what’s really underlying this in terms of consumer spending, business investment and leverage.”

The two bodies have also called on policymakers to take stock of the impact of unconventional monetary policy by OECD countries – particularly the unintended spill-overs into emerging markets.

“Emerging markets in Asia and Africa have had to contend with damaging flows of ‘hot money’ as a result of polices over which they had no choice. Institutionally, they are also much worse equipped to deal with the fallout than the countries that set the flows in motion,” said Raef Lawson, Ph.D., CMA, CPA, IMA vice president of research and policy.

The report, compiled from data created by 40,000 responses over five years, also raises questions about whether inflation really is dead at the global level, noting that it never really fell in Africa and the Middle East, while in Asia-Pacific input prices have rebounded since late 2012. Even the Chinese mainland, which has driven much of the global fall in inflation, saw a rebound from mid-2013 onwards.

Two of the world’s major economies – the EU and China – have driven much of the uncertainty over the past four years, but the ACCA/IMA heath-check is cautiously optimistic.

In the EU, the report finds that, despite mounting government debt, financial contagion has been contained, much of the missing institutional framework in the Eurozone is being built and the banking sector is on the mend. In China, despite repeated ‘doomsday’ warnings, slowing growth has so far remained manageable. However, the country is slowing down and shifting from an investment-driven to a consumption-driven economy, which will present a significant longer-term challenge for Chinese policymakers, and for countries which have tied their economic growth to commodity exports or direct Chinese demand.

The ‘health check’ of the recovery has shown that businesses around the world have been holding back on long-overdue investment for years, while austerity-hit public sectors have also often sacrificed public investment in order to maintain government consumption levels. The result has been a significant loss of productivity which will take years to reverse. ACCA and IMA believe, however, that a rebound in investment has already begun in 2013 and will be the biggest economic story of the next year, shaping industries for years to come. Access to finance has recovered consistently in most regions, businesses are increasingly seeking growth capital and it is mostly structural, rather than cyclical, factor that are holding up business financing.

Manos Schizas said, “Finance professionals are at the heart of business globally and have front-row seats to the recovery. Over the last five years they have given us accurate and timely indications of its direction of travel.”

“Our five year review demonstrates that policy makers and business leaders around the world must overcome numerous challenges if they are to secure a sustained economic recovery. Fortunately, both businesses and the public sector can continue to rely on finance professionals to help steer them through these challenges.”

Notes to Editors

  1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
  2. We support our 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.  
  3. As the first global accountancy body entering into China, ACCA now has over 23,000 members and 48,000 students, with 8 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Shenyang, Hong Kong SAR, and Macau SAR.
  4. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.
  5. For more information, please visit:
    www.accaglobal.com | www.facebook.com/ACCA.HongKong

Media and entertainment CFOs shift their primary focus from cost-cutting to growth, as economic confidence improves

— Concerns over economic uncertainty drops significantly for the first time in six years among CFOs of the largest media and entertainment companies

— Digital presents best opportunities for growth, and data analytics will provide insights to achieve strategies

— The US continues to be the most attractive market for investment, but emerging markets present opportunities for growth

NEW YORK, Aug. 11, 2014 /PRNewswire/ — The media and entertainment industry (M&E) has moved past the economic uncertainty of the global recession and shifted their primary focus from cost-cutting to growth, according to EY’s survey of CFOs of leading global M&E companies. The report, It’s Showtime! Digital drives the agenda, data delivers the insights (www.ey.com/ME_CFOstudy), which surveyed 50 large global M&E companies, shows CFOs are no longer worried about the global recession and are well-positioned to grow their companies through capitalizing on digital opportunities and through investments in technology, digital talent and infrastructure, as well as acquisitions and other deals. Only 26% of senior executives surveyed said global economic uncertainty would be a challenge during the next three years, compared to 62% two years ago, showing a dramatic decrease in concern over the economy.

John Nendick, Global Media & Entertainment Leader at EY, says:

“The CFOs told us in no uncertain terms that the economy is no longer an obstacle and now is the time for media and entertainment companies to invest in growth and focus on building their businesses. The industry is now poised to deliver on the promises it has been making the past several years but has been unable to achieve because of the economy. The CFOs recognize the recession is over and it’s showtime.”

Despite the opportunities for growth, the industry still faces many challenges. A majority of CFOs identified the greatest obstacles for the industry during the next three years as technology and platform disintermediation (64%), and an inability to persuade consumers to pay fair value for content (58%). Still others identified structural and regulatory uncertainty (42%) and reductions/reallocations of marketing budgets (26%) as major challenges for the future.

CFOs are positioning for growth and they see data analytics as the means to achieve it. They are placing significant emphasis on data to improve decision-making, systems and processes. But much work remains to be done. While 59% of CFOs feel their companies successfully use data to respond to and upsell existing customers, only 33% said their companies do a good job of using data to generate new business. And while only 39% of CFOs believe their organization is good at sharing data, 58% indicated that sharing data between business units would improve their organization’s overall effectiveness. 

Conversely, as data analytics become more essential to business operations, growing concerns over effectiveness and data overload also increase. The industry expects its data storage to increase from 1,100 exabytes of available data in 2010 to 8,000 exabytes by 2015. CFOs expressed concern over the increasing difficulty of identifying any meaningful insight within this massively expanding amount of data. 

Other key findings of the survey include:

  • Top priorities for the year ahead are the evolution of digital and online distribution (74%), cost reduction and business efficiencies (34%), creatively differentiating content (32%), extending brands globally (32%) and growth in new market segments (30%).
  • Emerging markets are no longer the top geographic focus for growth; 72% of M&E companies indicated their focus is on existing/core markets.
  • Seventy-two percent chose interactive media businesses as being best positioned to evolve and thrive in the future, followed by cable television networks and channels (42%), conglomerates (36%), film and television production (30%) and content and information services (30%).
  • The top actions identified to make companies more effective are attracting/retaining talent (58%), improved IT capabilities (42%), deeper understanding of market trends, customers and competitors (38%) and getting new products to market faster (30%).
  • CFOs prefer deals that give them either complete or majority ownership (61%) instead of making investments or having a minority interest (34%).
  • The average deal value during the first half of 2014 was US$939m, compared with US$220m in 2013 and US$157m in 2012, with cable operators driving the rise.

Howard Bass, EY’s Global Media & Entertainment Advisory Services Leader says:

“Recruiting and retaining talent is a significant concern for almost every CFO we surveyed. All agreed that talent, as well as establishing better collaboration between teams and different business units, are the most important factors for efficiently running their companies. The right talent means finding people who have the technical skills but are also digital savvy.”

About the survey
The survey was conducted among 50 CFOs of some of the largest global media and entertainment companies, headquartered in 10 countries and representing almost half a trillion dollars in media and entertainment revenue. The survey spanned industry sectors including filmed entertainment; broadcast and cable networks; music/radio; media conglomerates; advertising; internet and interactive media; publishing and information services; and cable/satellite distributors. Thirteen percent of companies surveyed have annual revenue greater than US$25 billion; 9%, US$10-$25 billion; 17%, US$5-$9.9 billion; 30%, US$1-$4.9 billion; 13%, US$500-$999 million; and 18%, less than US$500 million.

About EY’s Global Media & Entertainment Center
EY’s Global Media & Entertainment Center brings together a high-performance, worldwide team of media and entertainment professionals with deep technical experience in providing assurance, tax, transaction and advisory services to the industry’s leaders. Our network of professionals collaborate and share knowledge around the world, to provide exceptional client service and leverage our leading market share position to provide you with actionable information, quickly and reliably.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

Contact:

Steve Honig

Katherine Vogt

The Honig Company, LLC

EY Global Media Relations

+1-818-986-4300

+1-973-738-0264

press@honigllc.com

Katherine.Vogt@ey.com

Hong Kong Commercial Property Market Outlook Remains Unfavourable

HONG KONG, July 30, 2014 /PRNewswire/ — The Royal Institution of Chartered Surveyors (RICS) recently published the Q2 2014 RICS Global Commercial Property Monitor, showing that Occupier Sentiment Index (OSI) for Hong Kong’s commercial property market remains negative for the fourth consecutive quarter. Occupier demand continued to fall with the retail segment losing significant momentum, while office and industrial occupier demand remains stable. As a consequence of falling tenant demand and rising supply, rent value expectations at the three month time horizon were turning more negative. Investment sentiment, as reflected by the Investment Sentiment Index (ISI), remained in negative territory in Q2. With the recent retail sales and exports data surprising on the downside, GDP growth in Hong Kong has been disappointing. Indeed, the risks to the growth outlook remain ever present. RICS believes the growth trajectory is likely to continue to be bumpy in the second half as the global recovery will probably remain tepid. This will undoubtedly weigh on the commercial property sector.

Recent data indicates the short-term economic outlook for Singapore continues to to be relatively sluggish. Although the OSI remains in positive territory, it declined in Q2. Similarly, the ISI edged down over the quarter. Meanwhile, China is not looking particularly favourable, with the OSI and ISI falling into negative territory for the first time since 2009. By way of contrast, Malaysia’s OSI increased notably since Q1, climbing firmly into positive territory. In addition, the ISI also turned positive, for the first time since mid-2013, partly driven by domestic demand and growth in export according to the RICS. Furthermore, the OSI and ISI in Japan continued their upward trend, with both indicators posting another strong reading and remaining positive for the 12th consecutive quarter.

Turning attention elsewhere, the US results show an improvement on an already solid picture with growth in tenant demand, supported by a strengthening labour market, exerting upward pressure on rents. Likewise, respondents to the survey continue to post strong underlying results within the New Zealand, German and UK markets, with the buoyant OSI and ISI figures indicative of high confidence levels.

RICS Senior Economist Andy Wu, said: “In Hong Kong, rents in the central business district continued to struggle to show any significant growth in the second quarter, given a lacklustre employment market in the financial services sector and rising levels of available rental stock in the decentralized business districts. Our survey results also indicate that investors are still somewhat hesitant towards making a commitment in the commercial property and we expect the trend to continue for the time being.

The biggest threat to China, other than headwinds from a recurrence of tighter credit conditions, is the seemingly oversupply of offices and retail space which will put a strain on current rental values and prices during a period of fading interest from businesses and investors. We believe investment levels and transaction volumes will likely continue to be depressed through the reminder of the year. Nevertheless, acceleration of government reforms and measures aimed at stimulating the economy should offset some of the adverse market forces.

Interestingly economic optimism, thought gently fading, has continued to trigger strong demand for property space in Japan. It’s clear both foreign and domestic investors still see the value of Japanese commercial real estate and remain particularly enamored with the office, retail and industrial sectors. We believe this upward trend will unlikely reverse itself anytime soon and investment numbers will continue to uptick for some time to come.

Finally in Singapore, there are signs that economic uncertainty is starting to affect the commercial property sector. We believe in the short term real estate activity will remain relatively depressed due to ongoing economic challenges. That said, the fundamentals of the city state’s real estate market still look positive for the medium to long term as Singapore could continue to emerge stronger through a high level of transparency and a business-friendly set of policies.”

Notes to Editors:

RICS Occupier Sentiment Index (OSI): OSI is constructed by taking an unweighted average of readings for three series relating to the occupier market measured on a net balance basis; occupier demand, the level of inducements and rent expectations.

RICS Investment Sentiment Index (ISI): ISI is constructed by taking an unweighted average of readings for three series relating to the investment market measured on a net balance basis; investment enquiries, capital value expectations and the supply of distressed properties.

Net Balances: Net balance percents, or scores, are calculated by subtracting the numbers of respondents reporting ‘down’ from the number who reported ‘up’.

About the Survey: Available at www.rics.org/economics, the RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.

Logo – http://www.prnasia.com/sa/2009/08/17/200908171721.jpg

About RICS & RICS Asia

RICS is the world’s leading qualification when it comes to professional standards in land, property and construction.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 118,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

The RICS Asia supports a network of over 20,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Japan, Malaysia, Singapore, Thailand, The People’s Republic of China and the Hong Kong SAR. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Kiribati, Laos PDR, Macao SAR, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.

Sluggish Demand Leads to Higher Vacancy and a Slight Drop in Both Office and Retail Rents

HONG KONG, July 22, 2014 /PRNewswire/ —

  • Office leasing activities remained sluggish in the first half of 2014, leading to a 1.8% drop in overall grade A office rent.
  • Landlords will continue to show flexibility in their efforts to attract and retain tenants. As a result, rents are likely to drop by an additional 1% to 2% in the second half of 2014. Greater Central rents will be stable.
  • The retail sector continued to face headwinds with retail sales growth slowing markedly. Moderating sales performance and more cautious sentiment impeded retailers’ expansion in the first half of 2014.
  • Prime street shop rents eased by an average of 2.0% over the past six months; rents are likely to be stable or decrease slightly in 2H 2014. Local consumption is intact and the outlook remains generally positive.

Cushman & Wakefield, the world’s largest privately owned real estate services firm, today released a mid-year update on the Hong Kong office and retail leasing markets and the outlook for the second half of 2014.

Office leasing demand stays soft causing overall grade A office rent to ease slightly

Office leasing demand remained sluggish in the first half of 2014, whereas Grade A office net absorption totaled a modest 123,000 sq ft and only crossed into positive territory due to take-up in Kowloon East, primarily within new stratified buildings completed since late 2013. By submarket, leasing activities continued to gain momentum in Greater Central, as evidenced by positive net absorption of 120,500 sq ft, but remained subdued in other locations. Greater Central continued to see leasing demand being supported by mainland Chinese financials and tenants with smaller-sized requirements. For example, China Securities International recently expanded by a floor of 13,000 sq ft in Two Exchange Square earlier this year, while China United Credit Finance took a whole floor of 22,000 sq ft in Two Pacific Place. Foreign financials situated in the district are still tending to downsize (RBS in AIA Central) or relocate for cost savings (Wells Fargo moving from AIA Central to Three Pacific Place), but there were several instances of space upgrades (Banco Santander and Wellington Global Investment. moving from One Exchange Square to Two IFC; UOB consolidating from Landmark and Cosco Tower to Citibank Plaza). Tenants on 3-year leases expiring this year are facing market rents which are, on average, 20% lower than those under their current lease.

Wan Chai/Causeway Bay, Hong Kong East and Tsim Sha Tsui all recorded slight negative absorption of between 50,000 to 60,000 sq ft over the past six months due to higher availability and tempered demand as more occupiers have shelved their expansions or seek to consolidate their office space. These trends are becoming more prevalent in fringe-core and non-core office districts, where office rents are still at or near peak-levels. After dipping slightly to 5.0% in 1Q 2014, office availability rate climbed back to 5.4% in 2Q 2014. Both Wan Chai/Causeway Bay and Tsim Sha Tsui’s availability rates climbed to approximately 5.0% by mid-year, while availability in Hong Kong East, still the lowest at 3.2%, climbed to its highest level in two years due to some large tenants, such as Time Warner, Nokia, and Western Union releasing space into the market. In Tsim Sha Tsui, Deutsche Bank and Morgan Stanley in ICC consolidated operations which caused the district to experience the largest upswing in availability in recent months. Greater Central availability, which has stood at roughly 7.0% since 2Q 2012, remains the highest by district.

Overall grade A office rents dropped by 1.8% in the first half of 2014, led by a 5.5% drop in rents in Kowloon East. Kowloon East landlords are facing added pressure from new strata units put up for lease and also several new industrial revitalization projects to be completed this year whose low pre-commitment rates are indicative of slower overall demand. Rents inched upward by 0.7% in the first half in Wan Chai/Causeway Bay, but dropped mildly in other districts. Greater Central rents continued to hover around HK$96-97 per sq ft, on average. Gary Fok, Executive Director, Commercial – Hong Kong, said, “We anticipate that the Greater Central leasing market will continue to exhibit a stabilizing trend owing to a gradual improvement in demand. Availability will slightly ease and rents will remain stable over the next six months. Outside of Greater Central, demand has been sluggish with few tenants willing to expand or absorb relocation costs. Landlords will continue to show flexibility in their efforts to attract and retain tenants, most notably in Kowloon East where availability is higher. As a result, rents will drop by an additional 1% to 2%, but not more than this because availability is still at a healthy level, and there is a lack of new supply especially in core and fringe-core locations.”  

Sales slowdown urging caution, leading to slower brand expansion and a drop in rents

The retail sector continued to face headwinds associated with slower tourism growth and changes in visitor profile and spending in the first half of 2014. These factors, as well as a high base for comparison last year, caused the slowdown of retail sales to deepen. Total retail sales decreased by 0.2% year-on-year from January to May. The slight drop was led by the downturn in sales of watches and jewelry, which dropped by 14.3% after robust sales in mid-2013. Apparel and department stores sales and restaurant receipts all grew stably owing to intact local consumption.

Moderating sales performance and more cautious sentiment impeded retailers’ expansion in the first half of 2014. Luxury brands have stayed conservative, while watch and jewellery retailers notably cut back on new stores. Several leading local retailers announced lower sales during recent holidays and are also taking more cautious approaches. Despite the hurdles, Hong Kong has not lost a step as a leading retail destination in Asia, and, therefore, in its ability to attract new brands and support expansion of existing ones. As evidenced by recent activity, including Topshop’s and Esprit’s planned expansions and the entrance of J.Crew, renowned international brands are showing a long-term commitment to the market, which is also seeing a shift toward a more diverse offering of middle to high-end brands.

Vacancies in main streets have remained low, but have risen in 2nd and 3rd tier streets over the past six months. Prime street shop rents eased slightly in the first half of 2014, having dropped by an average of 2.0%. During the first half of 2014, average rental increment on renewals and new leases stood at approximately 40%, which is down from 60% to 70% growth during the same period last year. In the second half of 2014, we expect that prime shop rents will be relatively stable, potentially falling by 2% to 3%, while more secondary locations will see a slightly steeper adjustment of 5% to 8% due to higher vacancy and slower demand. Michele Woo, Executive Director, Retail – Hong Kong, said, “Luxury brands have turned more cautious as sales growth has slowed amid the shift toward more affordable luxury and mid-priced goods. Their slower expansion has opened some doors for more mid-tier brands, but they also operate under tighter margins, therefore, their real estate affordability is comparatively lower and this will have an impact on rents. Nonetheless, the outlook for the sector is still positive. The local consumer base remains strong and tourism is still growing at a high rate. Hong Kong will maintain its position as the premier shopping destination in Asia and this will continue to bring new brands to the city.”

APPENDICES

I.     GRADE A OFFICE LEASING TRANSACTIONS

Date

Tenant

Building

District

Area (sq ft)

Reason for Lease

Existing Address

2Q

United Overseas Bank

Citibank Plaza

Greater Central

33,500 (L)

Relocation & Consolidation

COSCO Tower & Landmark

2Q

China UCF Group

Two Pacific Place

Greater Central

22,100 (L)

Relocation & Expansion

Hutchison House

2Q

Nissan

Hopewell Centre

Wan Chai/ Causeway Bay

46,000 (L)

Relocation & Expansion

Citibank Tower

2Q

Wells Fargo

Three Pacific Place

Wan Chai/ Causeway Bay

32,000 (L)

Relocation

AIA Central

2Q

Societe Generale

Three Pacific Place

Wan Chai/ Causeway Bay

16,300 (L)

Expansion

Three Pacific Place

2Q

FWD

Devon House

Hong Kong East

27,000 (L)

Expansion

Devon House

2Q

Compass Office

Silvercord Tower 2

Tsim Sha Tsui

11,500 (G)

Expansion

N/A

2Q

E. Sun Commercial Bank

The Gateway Tower 6

Tsim Sha Tsui

7,400 (G)

Expansion

The Gateway Tower 6

2Q

National Investment Fund

Octa Tower

Kowloon East

23,800 (G)

Expansion

Great Eagle Centre

2Q

Sainsbury’s Asia

Millennium City 1

Kowloon East

21,400 (G)

Relocation

The Gateway Tower 1

1Q

Wellington Global Investment

Two IFC

Greater Central

23,000 (L)

Relocation

One Exchange Square

1Q

Banco Santander, S.A.

Two IFC

Greater Central

18,400 (L)

Relocation

One Exchange Square

1Q

HK Sanatorium & Hospital

One Pacific Place

Greater Central

39,000 (L)

New Set Up

N/A

1Q

Principle Insurance

Hopewell Centre

Wan Chai/ Causeway Bay

16,400 (L)

Expansion

Hopewell Centre

1Q

Facebook

One Island East

Hong Kong East

11,000 (L)

New Set Up

N/A

1Q

Medisun Co.

Octa Tower

Kowloon East

46,200 (G)

Expansion

Great Eagle Centre

1Q

Compass Office

Langham Place Office Tower

Kowloon West

17,400 (G)

Expansion

N/A

1Q

Sun Life Financial

Two Harbourfront

Kowloon Others

22,000 (G)

Expansion

Two Harbourfront

II.  MAJOR OFFICE SUPPLY

Completion

Project Name

District

Developer

NFA (sq ft)

Single Owner / Strata-Title

2014

33 Des Voeux Road Central

Greater Central

Bank of East Asia

53,500

Single Owner

Billion Plaza II

Kowloon West

Billion

166,200

Strata-Title

Pioneer Place (revitalized ind bldg)

Kowloon East

Pioneer Global

184,300

Single Owner

KOHO (revitalized ind bldg)

Kowloon East

Pamfleet

157,500

Single Owner

KC100 (revitalized ind bldg)

Kowloon West

Campell Group

157,500

Single Owner

Octagon

Kowloon West

K Wah

296,700

Single Owner

Sub-total:

1,015,700

2015

50 Wong Chuk Hang Road

Hong Kong South

SHK

68,000

Strata-Title

41 Heung Yip Road

Hong Kong South

Cheung Kong

186,800

Single Owner

2-12 Observatory Road

Tsim Sha Tsui

Lai Sun & Henderson

139,700

Single Owner

10 Shing Yip Street 

Kowloon East

Billion

198,300

Strata-Title

15-17 Chong Yip Street

Kowloon East

Billion

201,500

Strata-Title

52-56 Tsun Yip Street 

Kowloon East

Billion

297,700

Strata-Title

Manulife Tower (One Bay East – West Tower)

Kowloon East

Wheelock

409,600

Self-Use

Citibank Tower (One Bay East – East Tower)

Kowloon East

Wheelock

409,600

Self-Use

33 Tseuk Luk Street

Kowloon East

SHK

196,000

Strata-Title

Sub-total:

2,107,200

2016

Joyce Centre

Hong Kong South

Kwong Hing Investment

130,800

Single Owner

34 Wong Chuk Hang Road

Hong Kong South

K Wah

132,800

Single Owner

22 Des Voeux Road

Greater Central

Chinachem

65,400

Single Owner

10-12 Queen’s Road Central

Greater Central

SH Comm. Bank

106,200

Single Owner

Wing On Central Building

Greater Central

Chinachem

72,100

Single Owner

8 Cannon Street

Wan Chai/Causeway Bay

Phoenix

142,600

Single Owner

14-30 King Wah Road

Hong Kong East

Henderson

230,800

Single Owner

Goldin Financial Global Centre

Kowloon East

Goldin

681,900

Single Owner

2 Ng Fong Street

Kowloon East

Billion

251,200

Strata-Title

Hung Luen Rd. & Kin Wan St. (Two Towers)    

Kowloon Others

Wheelock

477,600

Strata-Title

On Kwan Street & On Muk Street 

Kowloon Others

Billion

281,600

Strata-Title

Sub-total:

2,573,000

2017

4 Yip Fat Street & 8 Heung Yip Road

Hong Kong South

SHK

117,600

Strata-Title

Asian House Redevelopment

Wan Chai/Causeway Bay

Chinachem

236,000

Single Owner

Somerset House Redevelopment

Hong Kong East

Swire

928,200

Single Owner

New World Centre Redevelopment

Tsim Sha Tsui

New World

637,100

Single Owner

Sheung Yuet Road & Wang Tai Road

Kowloon East

Pacific Investment

233,100

Single Owner

Wang Chiu Road & Lam Lee Street

Kowloon East

Swire

499,300

Single Owner

180 Wai Yip Street

Kowloon East

SHK & Wong’s

383,400

Strata-Title

On Yiu & On Kwan Street 

Kowloon Others

Billion

344,300

Strata-Title

Sub-total:

3,379,000

2018

Sunning Plaza Redevelopment

Wan Chai/Causeway Bay

Hysan

317,200

Single Owner

15 Middle Road Carpark Redevelopment

Tsim Sha Tsui

TBC

254,800

Single Owner

Wharf T&T Square Redevelopment

Kowloon East

Wheelock

447,000

Strata-Title

Hang Yip St. ,Yan Yip St. & Kwun Tong Rd.

Kowloon East

Mapletree

528,200

Single Owner

CSW Post Office Redevelopment

Kowloon West

First Group

135,500

Single Owner

Sub-total:

1,682,700

Grand Total:

10,757,600

*Note: The expected timeline is subject to changes

III.   MAIN STREETS RETAIL LEASING TRANSACTIONS

Date

Tenant

Location

District

Area (sq ft)

Retailer Type

2Q

Currency Exchange

Cannon Street

Causeway Bay

50

Currency Exchange

2Q

Prince Jewellery & Watch

Kai Chiu Road

Causeway Bay

400

Watch & Jewellery

2Q

Esprit

Leighton Road

Causeway Bay

7,000

Fashion

2Q

Pandora

Queen’s Road Central

Central

2,400

Accessories

2Q

Esprit

Queen’s Road Central

Central

17,900

Fashion

2Q

Chow Tai Fook

Haiphong Road

Tsim Sha Tsui

1,600

Watch & Jewellery

2Q

Sulwahsoo

Canton Road

Tsim Sha Tsui

700

Cosmetics

2Q

Chain Pharmacy

Park Lane

Tsim Sha Tsui

700

FMCG

2Q

Swatch

Sai Yeung Choi Street South

Mongkok

300

Watch

2Q

City Chain

Sai Yeung Choi Street South

Mongkok

1,400

Watch

1Q

Standard Chartered Bank

Russell Street

Causeway Bay

5,700

Banking

1Q

Tsui Wah

Lockhart Road

Causeway Bay

8,000

Catering

1Q

Samsung

Des Voeux Road Central

Central

6,000

Electronics

1Q

Marks & Spencer Food

Hollywood Road

Central

4,600

Grocery

1Q

Luk Fook

Canton Road

Tsim Sha Tsui

1,900

Watch & Jewellery

1Q

ISA

Carnarvon Road

Tsim Sha Tsui

10,800

Fashion

1Q

Innisfree

Granville Road

Tsim Sha Tsui

1,000

Cosmetics

1Q

Chow Tai Fook

Sai Yeung Choi Street South

Mongkok

4,800

Watch & Jewellery

1Q

Chain Pharmacy

Soy Street

Mongkok

900

FMCG