Jardine Matheson to exit Taikoo Place, consolidate offices in Central: sources

Jardine Matheson is giving up its remaining office space in FWD Tower at Taikoo Place and plans to relocate staff back to Jardine House in Central as part of operational consolidation, sources said. The group’s primary office at Jardine House, part of its own property portfolio, “is now undergoing renovations to create a modern workspace that will accommodate all head office employees from May”, allowing it to operate “more collaboratively and dynamically”, according to sources familiar with the matter. Jardine Matheson did not make an official comment on the relocation. The conglomerate currently occupies one floor in FWD Tower. It had already given up one floor last year and the relocation would see it surrender the remaining space, sources said. The move was limited to the parent firm’s operations, they added. DFI Retail Group, a unit under Jardine Matheson that operates Wellcome, Mannings, 7-Eleven and Ikea in Hong Kong, is listed on the fifth floor of FWD Tower in its 2025 annual report and is not affected. Swire Properties, the landlord of Taikoo Place, confirmed Jardine Matheson’s current tenancy but declined to comment further. The relocation aligns with a broader trend of companies consolidating into the core district of Central, where landlords like Henderson Land have been positioning premium office space to capture renewed demand. Jardine Matheson has been reshaping parts of its business in recent years, reducing headcount and office arrangements across locations. The group controls a wide range of businesses, including holding major interests such as Hongkong Land, Mandarin Oriental, and Jardine Pacific. The shift comes as Hong Kong’s office market diverges between Central and decentralised districts. Vacancy rates in Central fell to 9.9 per cent in February, returning to single digits for the first time in more than two years, while rents rose 3.5 per cent in the first two months, according to JLL. By contrast, Hong Kong East – where Taikoo Place is located – has a vacancy rate of 12.8 per cent, reflecting softer demand as rent continues to face pressure. “Taikoo Place continues to maintain a steady occupancy rate,” a Swire Properties spokesperson said, adding that its offices were well-positioned to benefit from the ongoing “flight to quality” trend. Its Hong Kong office rental income fell 4 per cent year on year to HK$4.89 billion (US$624 million), with CEO Tim Blackburn warning the market remained under pressure as companies cut costs and delayed leasing decisions, according to the 2025 annual report of Swire Properties last month.