Mainland school operator leases Kowloon tower as talent influx drives city’s education boom

The tenant operates top-tier non-tertiary schools in mainland China and is listed on the Hong Kong stock exchange

A Hong Kong-listed educational group has completed the largest commercial property leasing deal so far this quarter, as the sector benefits from an influx of immigrant and expatriate families to the city, according to CBRE.

The tenant agreed to occupy and transform the entire Tower B at the China Life Centre in Hung Hom, Kowloon into a purpose-built education complex spanning about 36,400 sq ft, said Frederick Lai, senior director for capital markets at the property consultancy

“This project showcases the successful repurposing of a commercial asset to support Hong Kong’s expanding education sector,” Lai said.

Lai declined to name the tenant, citing a non-disclosure agreement, but said it operated top-tier non-tertiary schools in mainland China and was listed on the Hong Kong stock exchange.

“They had been planning to set up a school in Hong Kong for a number of years now and finally they found a perfect opportunity,” Lai added.

CBRE predicts the education sector will play a sizeable role in real estate investment and leasing in Hong Kong given the shortage of available school spots for children of expatriates and immigrant families.