Hysan courts fintech office portfolio as ZA Bank commits to new Causeway Bay headquarters
Digital bank ZA Bank is taking 45,000 square feet (4,181 square metres) across four upper floors at Hysan Development’s Lee Garden Eight for its new headquarters, adding to a wave of financial and technology companies reshaping Causeway Bay’s commercial landscape. The move comes as landlords across the district grapple with a changing property market marked by excess office space. The bank is…
ZA Bank, a digital bank, is set to expand its presence in Causeway Bay by leasing 45,000 square feet across four floors in Lee Garden Eight, developed by Hysan. This move adds to the increasing number of fintech and technology companies transforming the commercial landscape in the area. As landlords in the district struggle with an excess of office space, the new headquarters are expected to be completed in 2027, aligning with Hysan and its partner Chinachem Group's delivery of approximately 1.1 million square feet of commercial space to the district in the fourth quarter of this year.
The move comes as Causeway Bay and Wan Chai continue to attract office supply demand, although recovery in these districts is slower compared to Central. At the end of June, Hysan's office portfolio occupancy stood at 93%, down from 94% six months prior. Office turnover also declined by 1.3% in the first half of the year, with rental reversions remaining negative.
To combat these trends, Hysan has targeted more fintech and digital economy tenants for the Lee Garden Eight. Ricky Lui, Hysan's executive director and COO, noted that the new economy tenant portfolio is strengthening, with a tenant mix roughly balanced between financial services, professional services, and co-working operators.
The bank's CEO, Calvin Ng, stated that the expansion would support ongoing hiring and provide a more comfortable and convenient workspace for employees, with amenities such as social gatherings and dining. ZA Bank has no immediate plans to open a physical branch. The shift is also evident at street level in Causeway Bay, which was once one of Hong Kong's primary luxury shopping districts.
As rents have fallen, financial and technology companies have begun to take over prominent retail spaces. EleBank, another licensed digital bank, recently leased a 1,640-square-foot ground-floor shop for about HK$500,000 a month, which is roughly 76% lower than the peak rent of HK$2.1 million per month paid by Fossil for the same shop in 2012.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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