Lower Grade A office prices drive strong end-user demand
News release
15 January 2025
ESF acquires two floors at Island Place Tower in North Point
HONG KONG, 15 January 2025 – English Schools Foundation (ESF) has acquired two whole floor offices at 12/F and 13/F of Island Place Tower in North Point, with JLL serving as their sole buying agent. This acquisition is intended for ESF's own use, reflecting the organisation's commitment to long-term development in Hong Kong.
The two office floors comprise a total gross area of 40,380 sq. ft. and have been vacated. ESF plans to relocate from its current leased office in Quarry Bay to Island Place Tower this year.
Island Place Tower at 510 King's Road, situated close to the heart of North Point's business district with 5-minute walk from North Point MTR station, comprises a total gross area of 515,000 sq ft. The building is developed and managed by Swire Properties, which is one of the few quality Grade A office buildings in the area.
Belinda Greer, Chief Executive of ESF, said: “We are pleased to have purchased office space in North Point. This will become the new home for ESF’s head office later this year. The move makes financial sense given the current market conditions. However, this is about much more than dollars and cents,”
“Purchasing our own office is a clear demonstration of our commitment to Hong Kong and its people. We are born and bred in Hong Kong and our roots in this city already run deep. Taking this step will make them even stronger.”
Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said: "The recent decline in capital values of Grade A offices to attractive levels has fuelled increased end-user activity, particularly from universities and other educational institutions seeking premises for their own use. ESF's acquisition of two office floors for its own use further underscores the sustained demand for prime office space. Continued end-user demand, especially from the education sector, is expected to drive transactions in the office market this year."
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About ESF
The English Schools Foundation (ESF) is the largest English-medium international school organisation in Hong Kong. Our 22 schools and comprehensive programme of extra-curricular activities bring out the best in every student through a personalised approach to learning and by inspiring curious minds. There are over 18,500 students from 75 different nationalities in ESF kindergartens, primary, secondary and all-through schools.