Canadian Pension Fund

Canadian Pension Fund Rents Two Office Floors At The Henderson

HONG KONG – Sources revealed that the Canada Pension Plan Investment Board (CPP Investments) has entered into a deal to lease two whole levels at The Henderson, a 36-storey Grade A office building at 2 Murray Road in Central, reported Bloomberg on Friday evening (10 March, SGT).

CPP Investments plans to move out from Hongkong Land’s York House to The Henderson in 2024, but its office space at the upcoming office building would be slightly smaller than its current premises at York House, said the sources, who requested anonymity as the deal is private.

With a gross floor area (GFA) of 465,000 sq ft, the commercial property is expected to completed this year. Owned by Henderson Land Development, the floor plates at the office building measure between 12,000 sq ft and 15,000 sq ft.

Designed by Zaha Hadid Architects, other major companies that have pre-leased office space at The Henderson include Carlyle Group and auction house Christie’s.

Clinching CPP Investments as a tenant is a win for Henderson Land Development amid record-high office vacancy in Hong Kong. Based on data from property consultancy CBRE, 13 million sq ft of premium office space in the city were vacant as of February 2023, up from around 12 million sq ft in October 2022.

Office landlords in the city are also competing for occupants for commercial tenants as financial firms reduce their office footprint, while older office towers across the city are losing tenants, who are increasingly seeking to lease space in newer office towers with eco-friendly credentials.

Apart from the stiffer competition for office tenants, Hong Kong’s commercial heart, Central, is witnessing a spike in office stock for the first time in over 10 years. For instance, CK Asset Holdings Ltd is constructing a new office building adjacent to The Henderson that will also be ready this year. As for Henderson Land Development, it has a harbour-front commercial project with an office component that is expected to be partially finished by 2027.

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