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40% of the office floor under negotiation, occupation ready in early Q4 this year.
HONG KONG, 14 July 2011 – The redeveloped LHT Tower, previously known as the Luk Hoi Tong Building, now provides an eco-friendly, boutique Grade A mixed-use commercial building, located at the heart of core Central. Given the critical undersupply the Central market is facing and the quality of the building, the development has been attracting a lot of attention. Approximately 40% of the building is currently under negotiation.
Situated at 31 Queen’s Road Central and adjacent to the Central MTR station, the site was originally a mixed-use block built in 1961 called the Luk Hoi Tong Building, which used to accommodate retail and office space as well as the historical Queen’s Theatre. The redevelopment includes a Grade A office building, with 21 dedicated office floors and 6 storeys of retail. The building is anticipated to be ready for occupation by early 4Q this year.
‘With its location at the very core of Central and the superb quality of the building, LHT Tower is a very rare new supply in the district. Since the pre-launch last year, the building has received very strong leasing interest from the FIRBES industry,’ remarked Gavin Morgan, Deputy Managing Director and Head of Leasing of Jones Lang LaSalle Hong Kong. The supply of Grade A office space in core business districts is extremely limited. Central is currently experiencing a vacancy rate of just 3.7% compared to the ten-year average of 6.1%. It is expected that only 440,000 sq ft of new supply will become available in Central from now until 2015. ‘With a limited supply of expandable sites and new commercial developments in Central, redevelopment of existing old buildings into Grade A offices is one of the options to boost supply to cater the strong demand,’ said Morgan.
The retail element faces both Queen’s Road Central and Theatre Lane, which benefits from excellent frontage. In an environment where international brands fight for prime retail space to capture lavish spending by tourists particularly those from mainland China, LHT Tower has attracted a lot of interest from retailers and restaurateurs given its prime location. The building has been developed by The Luk Hoi Tong Co Ltd, a privately owned development company with an excellent track record of developing a range of commercial and residential properties. LHT Tower features 117,000 sq ft of Grade A office space with a lettable floor plate ranging from 5,364 sq ft to 5,793 sq ft with a typical efficiency rating of 90% and clear headroom of 2.85 m (9.4 ft).
The building has also incorporated green elements in its design including the use of double-glazed clear insulated glass units with high performance low-E coatings for its curtain wall. LHT Tower has obtained recognition for achieving Eco Building Platinum Standard from the Hong Kong Building Environmental Assessment Method (HK-BEAM) Society under its BEAM scheme, which defines over 100 best practice criteria to address environmental issues at each stage of a building’s life cycle.
Whilst LHT Tower will inject new stock to the Central market, it is unlikely to affect rentals values in the immediate future. ‘As the economy continues to bloom and the number of inbound mainland Chinese tourists keeps growing, corporates and retailers are constantly looking for space at prime locations for expansion and will continue to provide support to rental. In fact, office rental has already increased by 15% overall and 16.4% in Central in the first half of 2011. We expect this trend to continue for the rest of the year,’ concluded Morgan.
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