JSM advised City Lion Investment on one of the largest standalone leasing transactions in Hong Kong
8 May 2008
JSM advised City Lion Investment Limited, a wholly-owned subsidiary of Sun Hung Kai Properties Limited, in the leasing of 12 floors (approximately 420,000 square feet) of office space in the International Commerce Centre ("ICC") to an international investment bank for an initial term of 10 years. This transaction represents another one of the largest standalone leasing transactions in Hong Kong.
The transaction involves complicated variation rights to increase or reduce floors before the lease commencement, rights of first refusal, expansion rights and surrender rights.
JSM previously acted for Sun Hung Kai in its leasing of over 350,000 square feet of office space in ICC to Morgan Stanley in August 2007 and approximately 300,000 square feet of office space in ICC to Credit Suisse in December 2007.
ICC is part of Packages 5, 6 and 7 the Kowloon Station development, known as "Union Square". The 118-storey mega tower, with 2.5 million square feet of office space and an 800-room Ritz Carlton Hotel, will be Hong Kong's newest landmark. The tower will be completed in Phases. Phase 1 will be completed in 2008 and the final phase is expected to be completed in 2010. This international investment bank is expected to move its entire Hong Kong operations to ICC by 2009.
JSM acted for Sun Hung Kai in the development agreement of Packages 5, 6 and 7 of the Kowloon Station development with MTR Corporation Limited and in the hotel management contract with Ritz Carlton. JSM has also been instructed to act in the leasing of all the office spaces in ICC.