Sotheby’s, one of the world’s largest international auction houses, is expanding its footprint in Hong Kong.
The New York-headquartered firm is leasing some 24,000 square feet of space in the retail podium of a prime office building in Central, which it plans to use for hosting auctions, exhibitions and a new concept cafe.
The expansion shows the auction house’s strategy to “bolster future growth in the region” as it plans to “anchor its position at the forefront of Hong Kong’s art and cultural landscape”, said Nathan Drahi, managing director for Asia at Sotheby’s.The establishment of world-class museums such as the Hong Kong Palace Museum and M+, as well as the return of global art fairs, mark a new chapter in the city’s art scene, he added.
Sotheby’s “long-term” lease in Chater House will begin in the fourth quarter of 2023 , according to the landlord Hongkong Land. The two-storey space is currently occupied by the fashion label Giorgio Armani. Sotheby’s gallery is due to open in 2024.“Our vision is to open a maison in the very heart of the city, at street level with multiple access points so that it enables greater access to the public all year round,” Drahi said, adding that Chater House’s location fits the requirement.
Sotheby’s Hong Kong gallery is currently located on the 5th floor of Swire Properties’ One Pacific Place in Admiralty. The 15,000 sq ft space is used for exhibitions, auctions, international lectures and cultural events.Top global auction houses target China’s millennial art collectors
Sotheby’s will be the first auction house in Hong Kong to move from an office level space into a retail podium. The space will be used to hold auctions and private sales and will also build on Sotheby’s concept cafe. The auction house recently opened a coffee bar at its New York headquarters with Italian restaurant group Sant Ambroeus, and also has a restaurant in London.
The new location at Chater House will also include Sotheby’s Buy Now – a platform for instant purchases, and there will be a permanent museum of collectibles, which will be accessible to the public, like its galleries in New York and London.
Hongkong Land and Sotheby’s did not disclose details, such as the rental charge.
“We have been promoting art and culture throughout our portfolio for several decades and this strategic move by Sotheby’s underscores our Central portfolio’s reputation as the premier lifestyle and luxury destination right in the heart of Central,” said Robert Wong, CEO of Hongkong Land.
The announcement comes as the Hong Kong government lifted all travel restrictions for arrivals who test negative from Wednesday, removing a key source of frustration for travellers who are subjected to curbs during their first three days of stay. The government also scrapped its amber health code, allowing visitors to enter restaurants and other premises previously off limits.
Looking ahead, Hongkong Land said that its strong office and retail portfolio will prove “attractive to international businesses looking to base themselves in the city”.
“Retail and commercial tenants are looking for more than just a landlord these days,” said Neil Anderson, director and head of office, commercial property at Hongkong Land. “We believe our diverse range of amenities and value-added services are increasingly important for tenants as they look to retain and attract the best talent and customers.”
The gradual dissipation of the pandemic in the second half of this year has given tenants the confidence to look for space in various districts, with strong demand particularly from food and drinks operators, according to JLL.
“The retail market will undergo a more visible recovery when inbound visits for leisure purposes return and the China-Hong Kong border reopens,” said Jeannette Chan, senior director of retail at JLL in Hong Kong.
She expects rents of prime shopping centres to climb up to 5 per cent.
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