Attracting foreign institutions might prove difficult amid the commercial property sector’s elevated vacancy rates and uncertain recovery
Attracting foreign institutions, however, might prove challenging. The city’s elevated vacancy rates, looming new completions and uncertain rental recovery have kept global funds on the sidelines, while acquisition costs – combined with the capex required for conversion – may compress returns, according to analysts.
Established in 2022 as a wholly government-owned investment vehicle, HKIC was created when parts of Western institutional capital were pulling back from Hong Kong amid heightened geopolitical tensions. Its initial mandate focused on strategic sectors including hard technology, life sciences and green energy, with the aim of anchoring future industries in the city.
