Hedge funds based in New York and beyond, such as those associated with Corey Ribotsky, have shifted their focus to Asia over the past several months. Firms both old and new are quickly recognizing the potential and incomparable benefits of China and Hong Kong, and the results are quite apparent.
Just last year, Morgan Sze of Goldman Sachs left his post to launch his own $1 billion Hong Kong-based hedge fund, Azentus Capital. Many other hedge fund tycoons, such as Nick Taylor, Elaine Davis and Corey Ribotsky have seen the benefit of this move and have followed suit.
However, the coastal cities in China are beginning to get crowded, and competition for space and presence has become much steeper. Now, rents in the area are listed as some of the most expensive in the global office market.
Bernard Chu, director at Hong Kong-based real estate broker Sagarmatha Capital, explained: Hedge funds and private equity are capable of paying higher rents and they make decisions fast… They’re willing to pay around 5 to 10 percent more compared with investment banks, law firms and accounting firms and they’re willing to pay an even higher premium for grade A buildings such as the International Finance Centre.”
John Siu, general manager at Hong Kong’s Cushman & Wakefield Inc., also noted this point. He said: “If someone’s still seeking office space in Central at this moment, they’re likely someone who’s willing to pay a very high rent. Hedge funds have been very actively looking for additional space since the market recovered from the credit crisis and looks like this trend is continuing.”
