Demand sees Hysan boost Causeway Bay office space
Company to redevelop Sunning Plaza and Sunning Court as mixed-use office and retail complex as tenants move out of Central
Planning is under way for the combined redevelopment of Sunning Plaza and Sunning Court in Causeway Bay into a mixed-use office and retail complex, Hysan Development said yesterday.
The project was expected to be completed by around 2018, said company chairman Irene Lee Yun-lien.
The company said the redevelopment of Sunning Plaza and Sunning Court was mainly to cater for the creation of offices for tenants who were moving out of Central and to make sure there was enough space to deal with future demand.
In a study published last year, property consultancy Jones Lang LaSalle reported that grade A office rents in Central dropped 11.2 per cent from the previous year. Rental levels for Causeway Bay were relatively stable, with an increase of 2 per cent.
The company expected the redevelopment of Sunning Plaza and Sunning Court to bring about a 25 per cent increase in gross floor area.
Hysan's deputy chairman and chief executive Lau Siu-chuen said: "For Hysan Place, in view of the limited supply of grade A office space in competing core localities in the next years, we shall continue to balance occupancy with tenant profile, enhancing the positioning of our portfolio."
