On 21 May 2018, as another landmark building in Kwun Tong, Hong Kong, the Hong Kong LVGEM NEO Project of LVGEM (China) Real Estate Investment Company Limited (“LVGEM (China)”; stock code: 00095.HK) was officially topped out when the last shovelful of sand were put on the ground. Chairman of LVGEM Group Wong Hong King, Chairman of LVGEM (China) Huang Jingshu, Executive Director and Chief Executive Officer Tang Shouchun, Executive Directors of LVGEM (China) Ye Xingan, Deng Chengying and Huang Haoyuan, Vice President Hu Yong and the management of Wheelock Properties (Hong Kong) Limited and Hip Hing Construction attended the topping-out ceremony to witness this proud moment. With completion of the project, LVGEM (China) will also set up its Hong Kong headquarters there.
Located in CBD with impressive sea views
Hong Kong is the global financial centre where quality offices are in great demand. Due to tight supply, the rentals for Grade A offices in Central, a core business district in Hong Kong, are climbing year on year and now are the highest in the world, an investigation showed. In 2011, Hong Kong unveiled the Energizing Kowloon East initiative, with an aim to create the second core business district in Kowloon East and develop Kowloon East into a smart city on a pilot basis. Driven by the initiative, the government invested a great deal of resources in the infrastructure projects of MTRCL. To take advantage of the opportunities arising, a number of developers began the construction of Grade A office buildings in such area.
In 2017, LVGEM (China) acquired the Grade A waterfront office building project located in Kowloon East from Wheelock with transaction value of HKD9.0 billion and renamed it Hong Kong LVGEM NEO Project. Situated at No. 123 Hoi Bun Road, Kwun Tong, Hong Kong, a core location of the second core business district of Kowloon East so called “CBD2″, the project is in close proximity to Kwun Tong Promenade, enjoying the most breathtaking sea views in the region and the panoramic view of Victoria Harbour.
Kowloon East has an integrated transportation network. After the light rail and Shatin to Central Link launching in 2021, such area will be highly accessible. Leveraging the geographical advantage and government support, the Hong Kong LVGEM NEO Project is equipped with comprehensive transportation network. The project is only a three-to five-minute walk to the MTR station, 15-minute drive to the express rail station and thirty-to fifty-minute travel to major boundary control points of Shenzhen and Hong Kong.
“NEO” brand to establish foothold in Hong Kong, with operation incorporated with local characteristics
“NEO” is a well-known property brand developed by LVGEM (China) under asset management portfolio. Being the first project of LVGEM (China) in its expansion into the high-end commercial office market, the Shenzhen LVGEM NEO Urban Commercial Complex located in the CBD of Futian, Shenzhen has become a landmark building in the central and western district of the city.
Ms. Huang Jingshu, Chairman of LVGEM (China) comments that the completion of the Hong Kong LVGEM NEO Project marks the successful launch of the “NEO” brand in Hong Kong and the building is LVGEM (China)’s first commercial project in Hong Kong. Hong Kong commercial property market made an early start. As compared to the mainland, Hong Kong has developed more mature project development and management practices. For project operation, the Hong Kong LVGEM NEO Project will draw successful experience of the Shenzhen NEO, and Hong Kong LVGEM NEO operation will be incorporated with Hong Kong local characteristics. Harriman Property, with reputable track records in managing commercial properties, is appointed as the building management operator the Hong Kong LVGEM NEO , to provide the professional and tailored property management service.
Building Nature of Green and Fin-Tech
Riding on government initiative of Energizing Kowloon East the, Kowloon East has seen rapid development in recent years. World-famous top 500 global financial enterprises have set up their presences in Kowloon East, like Citibank’s largest office in Hong Kong is not far away from the Hong Kong LVGEM NEO Project. Fortune Global 500 Manulife Financial has also had an office in Wai Yip Street, Kwun Tong. In addition, it is said that JP Morgan will move some functional department to Hoi Bun Road in 2019. Supported by government, there are more commercial amenities like five star hotels, top-notch shopping malls in the area, to accelerate the CBD2 development.
Eric Lee, General manager of the Hong Kong LVGEM NEO Project of LVGEM (China) introduced that LVGEM (China)’s headquarters in Hong Kong will situate in Hong Kong LVGEM NEO. The pre-lease of the project will formally launche in July this year, neverthless some enterprises had already started some leasing enquiries to the building. In additional to Grade A building with first line harbor view, the project is positioned as a financial technology building integrated with health, green, humanity. Basing on LVGEM’s technology platform in mainland, the project will introduce a world-advanced intelligent management system to operate the smart building. In order to provide better service to the cooperate clients, it will also introducethe latest types of operation involving leisure, entertainment and new retail, such as “unmanned supermarket”, while making proactive effort in offering offices space with humanistic care. In the meantime, to address cooperate staff’s needs during mealtime, a whole floor will be set aside and turned into a food court.
The Hong Kong LVGEM NEO Project is designed by Ronald Lu & Partners, a renowned architectural firm in Hong Kong. The design of the project was granted the LEED for Core & Shell Pre-certification (Platinum) by the U.S. Green Building Council, and the Provisional Gold Certification of BEAM Plus New Buildings (Vol. 1.2) by the Hong Kong Green Building Council.
Top 500 companies as target tenant
As the second core business district which has been receiving great support from the Hong Kong government, Kowloon East will carry on the success of the financial, insurance and high-end services businesses located in Central, Hong Kong Island, and with completion of relevant infrastructure and auxiliary facilities, Kowloon East will become a core business district in the near future, according to the analysis the members from the relevant sectors. As the second financial street of the business district in the future, more and more financial and insurance companies will be attracted to Hoi Bun Road, Hong Kong without any doubt.
Capitalising on the advantages possessed by Shenzhen, a city of technology, LVGEM (China) will introduce to the project more relevant technology companies, which is in line with the plan designed to develop the technologically innovative industries proposed by the Hong Kong government. Facilitated by the Guangdong-Hong Kong-Macao Grand Bay Area Plan and the Belt and Road Initiative of the nation, the project will enhance its influence and build its brand image rapidly by taking advantage of this positive trend, so as to develop itself into a financial technology centre in which various companies are headquartered and become a landmark office project in Kwun Tong. A number of homegrown companies, multinational companies or Fortune Global 500 companies will be attracted to the project. By the time, the project will have more potential for asset appreciation and its commercial value will surge as well.
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