DaiMon Asia Capital Expands Office in Hong Kong Amid High Vacancy Rates

In a surprising move, DaiMon Asia Capital, a prominent hedge fund operator, is expanding its office in Hong Kong's Central business district. This decision comes despite the city's record-high premium office vacancies and declining rental rates.

DaiMon Asia Capital has signed a lease for a 7,000 square foot office in Edinburgh Tower, part of the Landmark commercial complex owned by Hongkong Land Holdings Ltd. The new space will accommodate over 70 employees, doubling the capacity of its current office in the Nexxus Building.

Why this matters: DaiMon Asia Capital's expansion in Hong Kong despite high vacancy rates and declining rents signals confidence in the city's status as a financial hub. This move could inspire other companies to reconsider their stance on the city's business environment, potentially leading to increased investment and economic growth.

The expansion is notable given the current state of Hong Kong's office market. According to a report by CBRE Group Inc, the vacancy rate for grade A offices in Hong Kong reached an all-time high of 16.7% at the end of March. Moreover, rents have declined for the 20th consecutive quarter.

DaiMon Asia Capital has been operating from the Nexxus Building since 2016 and currently has over 30 employees in Hong Kong. The hedge fund, which manages $2.5 billion in assets, reported an estimated 10% return in the first five months of this year.

The firm's decision to expand in Hong Kong is partly driven by a growing pool of talent choosing to work in the city. Kenneth Kan, the Singapore-based Deputy Chief Executive Officer of DaiMon Asia Capital, stated, "With a growing pool of talent choosing to work in Hong Kong, this necessitated the need for a larger office, prompting us to search for a suitable space earlier this year."

Despite the challenging market conditions, DaiMon Asia Capital's expansion signals confidence in Hong Kong's status as a financial hub. The city has been working to attract talent and businesses after losing ground as a result of stringent Covid-era restrictions, geopolitical concerns, and China's economic slowdown.

In the first quarter of this year, Hong Kong's proceeds from initial public offerings were the lowest since 2009, and some international financial firms have reduced their office space. However, DaiMon Asia Capital's move into a larger office is a positive sign for the city's efforts to revive its economy.

DaiMon Asia Capital plans to move into its new office in the early fourth quarter, marking a significant step in its commitment to Hong Kong. The firm's expansion could inspire other companies to reconsider their stance on the city's business environment.

Key Takeaways

• DaiMon Asia Capital expands Hong Kong office despite high vacancy rates.
• New 7,000 sq ft office in Edinburgh Tower to accommodate 70+ employees.
• Firm's expansion signals confidence in Hong Kong as a financial hub.
• Growing talent pool in Hong Kong drove the need for a larger office.
• Move could inspire other companies to invest in Hong Kong's economy.