ZA Bank to relocate Causeway Bay HQ to Hysan's Lee Garden Eight by 2027
Digital bank ZA Bank is signing a deal for 45,000 square feet at Hysan Development's Lee Garden Eight. The landlord reports improved tenant demand in the district despite rising vacancy rates.
Digital bank ZA Bank has agreed to occupy 45,000 square feet across four upper floors at Hysan Development's Lee Garden Eight building. The company intends to move into Tower 3 in 2027. This agreement coincides with the completion of approximately 1.1 million square feet of commercial space in Causeway Bay by partner Chinachem Group later this year.
The leasing activity reflects a broader trend where financial firms are shifting into Causeway Bay as landlords face excess office supply. Demand for Grade A space is recovering slower than in Central, leaving vacancy rates at 9.8 per cent in August. Hysan Development's overall occupancy has fallen from 94 per cent to 93 per cent over six months, with rental reversions remaining negative.
To counter this trend, Hysan has specifically targeted fintech and digital economy tenants for its new portfolio. Rental trends have driven some existing companies in the district to move to Central, but Hysan claims its new tenant mix is becoming stronger. Office turnover revenue totaled HK$694 million in the first half of the year.
