Fueled by record inflows into Asian-based hedge funds, asset management firms are driving Hong Kong rent prices sky high as they expand their Asian investment operations. According to a Bloomberg news report, 25 of the largest global hedge funds are expanding their Asian operations targeting prime Hong Kong office space which has already seen price increases of nearly 10% this year.
With prime Hong Kong office space already at a premium, major hedge funds, such as SAC Capital Advisor and Ortus Capital Management are paying top prices for their expansion. Many of the hedge fund groups don’t require space much beyond 5,000 square feet which reduces their bargaining power for price breaks. The office growth is expected to continue as hedge funds continue their robust recovery from their 2008 lows. |
