Hysan’s Caroline Hill Road Project To Enlarge Its Office Portfolio
HONG KONG – Upon completion of its Caroline Hill Road project, Hysan Development’s office portfolio will be bigger than its retail space by around 33 percent, reported the South China Morning Post (SCMP) on Wednesday morning (28 December, SGT).
Notably, Causeway Bay’s largest commercial property landlord owns 4.5 million sq ft of office space, retail premises, and residential units primarily in the said area.
Hysan’s Chief Operating Officer Ricky Lui said the coronavirus outbreak has altered the office market. This resulted in changes on how the office is utilised and what tenants require for their workspace, amidst the prevalence of working from home (WFH) and companies slashing costs.
In August 2021, Hysan teamed up with IWG for the former to exclusively operate the latter’s coworking space brands like “Spaces” and “Signature” in the Greater Bay Area, including in Hong Kong. These also involved Hysan’s flagship Hysan Place and Lee Garden Three.
“Nowadays, flex has become a feature of offices,” Lui explained. “If you don’t have a very strong coworking element today, it’s like a shopping mall without restaurants.”
Lui shared that flexible office spaces make up over 10 percent of the total office tenants in Lee Gardens, reflecting a significant change in the office sector.
Meanwhile, the information regarding the Caroline Hill project was announced during a briefing by Hysan executives last Thursday, during which the landlord revealed that it has allocated HK$2 billion (US$256.2 million) to refurbish its Lee Garden portfolio in Causeway Bay and transform it into a one-stop luxury shopping destination. And the plan includes the construction of the Caroline Hill Road project.
Lui said the refurbishment will turn Lee Gardens into the home of luxury brands, with several high-end brands such as Dior, Cartier, Chanel, Hermes, and Louis Vuitton intending to expand in Lee Gardens, opening flagship stores spanning over 10,000 sq ft.
Apart from an upcoming underpass connecting the car parks in Lee Gardens, the plan also includes building new covered footbridges and walkways to the Causeway Bay MTR Station, in addition to the Caroline Hill Road project and the Lee Gardens area, which consists of Hysan Place as well as Lee Garden I, II, III, V, and VI.
Hysan intends to start the refurbishment of its HK$90 billion commercial property portfolio by October. It is expected to be completed in stages until 2026. The first project, a 7,000 sq ft urban park on Hysan Place’s level 4, will open in January 2023.
