Credit Agricole CIB has renewed its lease for 85,000 sq ft of prime office space at Pacific Place in Admiralty, extending its tenancy until 2034, according to landlord Swire Properties.
The renewal would continue a partnership spanning more than two decades, Swire Properties, one of Hong Kong’s largest commercial landlords, said in a statement on Monday. The premises – four floors at Two Pacific Place – serve as the French banking giant’s Asia-Pacific headquarters.
“ Pacific Place has been our home in Hong Kong and the regional headquarters for over 20 years,” said Jean-Francois Deroche, senior regional officer for Asia-Pacific at the bank. “It has been precisely where our teams collaborate, succeed and thrive together, alongside our local clients and partners.”
Deroche said the renewal “not only strengthens this ‘foundation’ for the next decade, [but] also shows our commitment to the city’s long-term development”.
Credit Agricole Group marked its 130th anniversary in the city last year.
“We are delighted to renew our long-standing partnership with Credit Agricole CIB, reaffirming Pacific Place’s status as a world-class business address in Hong Kong,” said Tim Blackburn, CEO of Swire Properties. “Under Swire Properties’ HK$100 billion [US$12.9 billion] investment plan, we are committed to enhancing our core portfolios in Hong Kong, including Pacific Place , to support the city’s long-term development as a global financial centre.”
The renewal marks the latest commitment by a Europe-based firm to either expand or establish offices in Hong Kong.
In recent weeks, Paris-based private equity firm Ardian and Switzerland’s MKS PAMP, one of the world’s largest refiners and traders of precious metals, officially opened their offices in Hong Kong’s top business districts of Central and Admiralty, respectively.
Ardian opened a 4,000 sq ft office in Central’s Two International Finance Centre late last month, aiming to grow its US$3 billion investment from Hong Kong-based clients.
MKS PAMP unveiled its 3,600 sq ft regional headquarters at St John’s Building on Garden Road in Admiralty earlier this month as it sought to capitalise on the city’s renewed focus on financial services and commodity trading.
Meanwhile, London-headquartered fintech company 3S Money said it planned to open an office in the city in January.
The commitments from foreign firms are helping lift sentiment in the office market.
Total net absorption in the city’s offices rebounded by 137.5 per cent to 646,000 sq ft in the September quarter, reversing the subdued performance in the first half of the year, according to a property agency. Despite new completions, the overall office vacancy rate declined to 13.4 per cent in September from 13.6 per cent in June, the consultancy said. Central and Kowloon East both saw vacancy rates drop by 0.8 percentage points.
Overall office rents fell 0.8 per cent in the third quarter, with all submarkets recording decreases.
