CLSA renews office lease with Swire Group, defying parent’s reported order to cut ties with company that drew China’s ire
- Hong Kong brokerage renews lease for offices at Swire Properties-owned One Pacific Place
- Beijing has been critical of how Swire Group-owned Cathay handled staff during Hong Kong protests
Brokerage CLSA has renewed its office lease at Hong Kong conglomerate Swire Properties’ flagship property. The Financial Times reported on Wednesday the firm had been under pressure to quit the premises by its mainland Chinese state-owned parent, Citic Securities.
Swire Properties’ parent, Swire Group, which owns Hong Kong carrier Cathay Pacific, has drawn Beijing’s ire after airline staff took part in the protests that have rocked the city since June.
Rick Gould, CLSA’s chief executive, in an email to staff on Wednesday, said the Hong Kong brokerage had renewed the lease for its more than 70,000 sq ft offices at One Pacific Place. The email was obtained by the South China Morning Post, but CLSA declined to comment when approached about details of the lease.
Swire Properties, however, confirmed that the lease had been renewed. “We can confirm that our lease agreement with CLSA for their tenancy at One Pacific Place has been extended,” the company said in an emailed statement. “Swire Properties values our long-standing relationship with CLSA, with the firm having a long-term tenancy at our two major office portfolios of Pacific Place and Taikoo Place,” it added.
CLSA has leased office space at One Pacific Place since 2000, Swire Properties said. The brokerage currently occupies office space covering three-and-a-half floors.
The brokerage, acquired by Citic in 2013, was under pressure to move out of One Pacific Place, because Swire Group had upset Beijing, according to the Financial Times.
