Morgan Stanley: Fully leasing West Kowloon IGC could boost Sun Hung Kai Properties' rental income by 4.3%

SadMoneyMeow · 2026-03-16T16:00:36+00:00

JPMorgan Chase will become the first major office tenant at New World Development's West Kowloon Art Plaza and plans to relocate from Millennium City in Kwun Tong in 2028. This move signals West Kowloon's emergence as a new financial hub, facilitating the pre-leasing process for New World's IGC, and is expected to drive rental income growth and earnings contribution.

SadMoneyMeow

2026-03-16 16:00:36

Abstract generation in progress

JPMorgan Chase releases a research report stating it will become the first major office tenant at Sun Hung Kai Properties’ West Kowloon West Kowloon Arts Square building, moving out of the Kwun Tong Harbour City currently leased in 2028. There are no signs of relocating the office at the Chater House in Central.

The bank believes this move further signifies West Kowloon as a new financial hub, with offices of UBS, Morgan Stanley, and Deutsche Bank also located in the area. This will help accelerate the pre-leasing progress of IGC, also located in West Kowloon, under Sun Hung Kai Properties, which is positive news for the company.

According to data, the rent level at ICC is HKD 60 to 80 per square foot per month, while recent transactions at IGC have rents ranging from HKD 45 to 55 per square foot. Assuming an average rent of HKD 50 for offices and HKD 100 for retail, with efficiency ratios of 80% and 65% respectively, full leasing of IGC could generate a 4.3% increase in rental income for Sun Hung Kai Properties. In terms of net profit, IGC is expected to contribute 2.7% to the company’s earnings.

(Edited by: Wang Zhiqiang HF013)

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