Nomura to Cut Office Space in Hong Kong IFC by Year-End

(Bloomberg) -- Japan’s largest securities firm Nomura Holdings Inc. is set to give up some office space in one of Hong Kong’s most coveted central business district locations, people with knowledge of the matter said.

Nomura currently employs more than 800 staff in the city, and occupies more than five floors of the office tower at Two International Finance Centre. The Japanese firm will hand back the 25th and part of the 27th floor when a new lease takes effect at the start of next year, said the people, who asked not to be identified as the information is private.

The bank is seeking to take advantage of the expiry of the current lease by releasing a floor which is primarily used as a data facility, another person said. That demand can be met by other data room infrastructure, the person said. A representative for Nomura declined to comment.

Cost cutting and fees from financing are expected to drive a rebound in profits for the Japanese lender’s investment bank, Kenji Teshima, head of investment banking for Asia excluding Japan, told Bloomberg in an interview last month. He said the investment bank expects to be profitable for the fiscal year ending March 31.

International Finance Centre, or IFC, is a mixed-use commercial development on the waterfront of Hong Kong’s Central district. It consists of two skyscrapers, an upscale shopping mall and the 55-story Four Seasons Hotel. It is co-owned by Henderson Land Development Co. Ltd., The Hong Kong and China Gas Co. Ltd. and Sun Hung Kai Properties Ltd.

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