naked Hub, a Shanghai based flexible workspace operator, entered the Hong Kong market by leasing c. 55,000 sq ft in Bonham Circus in Sheung Wan.
Challenge & need
naked Hub was looking for a minimum of 30,000 sq ft within the CBD area on Hong Kong Island. To secure the right space, operators often need to meet certain criteria on the lease terms to make the business transaction commercially viable. This, together with a limited supply of space on the Island and a lack of understanding of the business model by portfolio landlords, created a challenge to find the right space and convince landlords to accept the terms required by naked Hub.
Chairman of naked Hub, Grant Horsfield, was eager to identify a location which would allow naked Hub to create market interest and brand exposure.
Colliers strategy & service
By understanding the business model, we identified several buildings with locations and floor plates that met naked Hub’s requirements. We also took the time to educate landlords on what benefits an operator could offer a building, while considering their long-term plans for the assets.
Through our landlord relationships we were able to identify Bonham Circus and work along the value add fund Pamfleet on their recently acquired asset. We strategically structured the commercial terms for Pamfleet to allow them to reposition the asset, while also ensuring the commercial terms were attractive to naked Hub.
The transaction enabled Pamfleet to reposition the building, and allowed naked Hub to create exposure with branding on the east facing wall of the building and a branded lobby. naked Hub was able to enjoy a phased take up of the space while Pamfleet increased the value of their asset.
Jonathan Wright | Director
Philip Pang | Associate Director
Sayaka Matsumoto | Senior Manager
Download the full report here
Published: May 2018
By: Colliers Research