Ge Long Hui·2025-10-20 06:04Core Viewpoint - UBS reports that JPMorgan is in talks with Sun Hung Kai Properties regarding a potential lease for the entire West Kowloon Cultural District project, which is expected to be completed by mid-2026 [1] Group 1: JPMorgan's Potential Relocation - The project has a total floor area of 670,000 square feet [1] - JPMorgan currently occupies approximately 200,000 square feet at Chater House and 270,000 square feet at Kwun Tong Waterfront [1] - UBS estimates that JPMorgan's potential relocation could increase the vacancy rate of Hongkong Land's Central office by about 5% and Link REIT's vacancy rate at Kwun Tong Waterfront by 30% [1] Group 2: Financial Implications - As of June and March this year, the vacancy rates for Hongkong Land and Link REIT were 7% and 0.8%, respectively [1] - UBS believes that the potential lease could generate approximately HKD 275 million in EBITDA for Sun Hung Kai Properties [1] - Conversely, JPMorgan's departure may lead to a reduction in annual attributable EBITDA of approximately HKD 190 million for Hongkong Land and HKD 35 million for Link REIT [1]