Sun Hung Kai Sees 92% Occupancy For HK Office Portfolio

HONG KONG – Sun Hung Kai Properties said it recorded a relatively stable occupancy rate of around 92 percent for its office portfolio in the Chinese territory for the financial year ended 30 June 2021, according to its earnings conference call on Thursday (9 September).

Offices at the International Finance Centre (IFC) “were virtually fully let, while the International Commerce Centre (ICC) recorded stable performance. The Millennium City plus office cluster maintain a reasonable occupancy, despite keen competition in Kowloon East.”

However, Hong Kong’s largest developer by market capitalisation revealed that the gross rental income of its office properties in the city declined marginally by 1 percent to HKD6.6 billion in FY2021.

Aside from that, Sun Hung Kai Properties disclosed that its joint venture (JV) commercial project at 98 How Ming Street in Kowloon East, the development is expected to be ready by 2023. The complex was designed to achieve Platinum ratings under WELL and LEED.

As for its mixed-use project above West Kowloon’s high-speed rail terminus, the developer said it will feature a brand new concept with lots more open space for public use. With an overall gross floor area (GFA) of 3.2 million sq ft, the developments include a 600,000 sq ft shopping centre and a significant office component. The project was designed to obtain Platinum ratings from WELL, BEAM, and LEED.

In addition, Sun Hung Kai Properties disclosed that its total land bank in Hong Kong has reached about 57.9 million sq ft of attributable GFA. This includes 23.9 million sq ft of properties under construction and around 34 million sq ft of completed projects.

“Shopping malls together with offices accounted for the majority of completed properties at around 68 percent of the total. For properties under development, the majority is for residential use representing 74 percent of the total,” added the developer.