Company boosts office footprint despite insurance sector’s concerns over China’s tax clampdown
Prudential Hong Kong has agreed to lease headquarters space at Swire Properties’ One Taikoo Place and One Island East , marking a notable expansion of its office footprint in the city, according to the developer.
Under the agreement, the insurer will occupy a total of 83,000 sq ft across the two buildings, “reinforcing the company’s commitment to Hong Kong and Taikoo Place as its long-term headquarters”, said Swire Properties, one of Hong Kong’s largest commercial developers and landlords, in a statement on Wednesday.
There would be a “double-digit percentage increase in floor area following the office consolidation”, according to a Swire Properties spokesman.
“Our expanded presence at Taikoo Place reflects our confidence in Hong Kong’s future and the opportunities we see in one of the world’s leading international financial and insurance hubs,” Prudential Hong Kong CEO Lawrence Lam said.
“As customer needs evolve and demand for long-term health, protection and wealth solutions grows, we are investing in our people, capabilities and workplace to foster greater collaboration and drive innovation, enabling us to better serve our customers.”
Lam added that the “expansion enhances the employee experience and positions us for the next phase of growth”.
Prudential Hong Kong has been a tenant at Taikoo Place since 2011.
“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,” said Tim Blackburn, Swire Properties CEO.
“As Hong Kong continues to reinforce its status as an international financial centre, Taikoo Place is well positioned to serve the evolving needs of leading companies from Hong Kong, mainland China and overseas.”
Prudential’s expansion comes amid worries for the insurance sector following Beijing’s intensifying scrutiny of returns earned by mainland Chinese residents from offshore assets.
Mainland authorities had clarified that the 20 per cent personal income tax imposed on gains from offshore insurance policies was not a new policy – and was not specifically targeting the Hong Kong insurance industry.
Meanwhile, prime office empty space in Hong Kong fell to a 31-month low of 12.8 per cent in July, according to a property consultancy.
Except for Tsim Sha Tsui, where the vacancy rate held at 6.7 per cent, all other office districts – Central, Wan Chai and Causeway Bay, Hong Kong East and Kowloon East – saw empty spaces edge lower, according to the property consultantcy.
“Hong Kong’s office leasing market gained further momentum in July, with net absorption reaching 313,000 sq ft,” a property consultant said. “Financial institutions, banks and professional services firms remained the primary drivers of demand.”
