HashKey Leases Office Space In Three Exchange Square
HONG KONG – Following a report earlier this month saying that HashKey has leased the entire 14th floor of Three Exchange Square, more details about the lease terms have been released, reported Mingtiandi on Monday afternoon (27 September).
Notably, HashKey is forking out a monthly rent of HK$120 (US$15.40) psf for workspace at the landmark office tower in Central that commands some of highest office rents in Hong Kong. The commercial property is also owned by Hongkong Land, one of the top landlords in the city.
Moreover, it is the first cryptocurrency firm that has leased office space within the Exchange Square complex, which comprises 3 Grade A office buildings that have traditionally housed established global law firms and blue chip investment banks.
HashKey, which was founded 3 years ago, is renting office space close to Hong Kong’s bourse and mainstream financial firms, such as ANZ Bank, BNP Paribas, and China Merchants Bank.
“At HashKey Group, we are excited to be the first digital assets firm in Exchange Square and look forward to expanding our footprint to Central, the heart of Hong Kong,” said HashKey’s Executive President, Michel Lee.
“Three Exchange Square is one of the most prestigious office buildings in Hong Kong and we are glad to be moving to the centre of the business community.”
Businesses are securing office space in prime areas in Hong Kong like Central, where Three Exchange Square is located, as the higher vacancy levels have dragged down office rents. In fact, HashKey’s 10,150 sq ft lease comes as the vacancy rate in Hongkong Land’s portfolio in Central marginally increased from 6.3 percent in Q4 2020 to 6.4 percent as of June 2021.
Aside from that, Hongkong Land underscored that the latest office rental deal highlights the shift in Central’s office market, wherein crypto companies are leasing workspaces next to established financial firms.
“Over the years, when hedge funds, quant funds, private equity firms and venture capital funds first came onto the scene, they naturally gravitated towards Hongkong Land’s buildings as being in the centre of the financial community in Hong Kong,” noted, Hongkong Land’s Director & Head of office for commercial property, Neil Anderson.
“Digital asset exchanges are just the next chapter in that development within the financial community,” he added.
In June 2021, it was reported that bitcoin exchange BitMEX was in discussions to expand its office in Central’s Cheung Kong Centre by half a floor, after spending a record leasing rate of HK$225 (US$28.67) psf per month for the building’s 45th floor in 2018.