Hysan Development
| Company type | Public company |
|---|---|
| Industry | Property investment, management, and development |
| Predecessor | Lee Hysan Estate Company Limited |
| Founded | October 20, 1970 in Hong Kong |
| Founder | Lee Hysan (founder of predecessor) |
| Headquarters | Hong Kong , Hong Kong |
Area served | Hong Kong |
Key people | Irene Lee (Executive Chairman) |
| Products | Commercial and residential properties |
| Parent | Hysan Estates Limited (largest direct shareholder) |
| Website | www |
Hysan Development Company Limited is a property investment, management, and development enterprise headquartered in Hong Kong and publicly traded on the Stock Exchange of Hong Kong. The company's foundation dates back to 1923 when entrepreneur Lee Hysan purchased land in East Point—now known as Causeway Bay, located on Hong Kong Island. Although Lee Hysan passed away in 1928, his family expanded the estate into a significant business conglomerate. By 2018, Hysan had become the foremost commercial landlord in the Causeway Bay district, as reported by the South China Morning Post.
Origins
The company’s beginnings are linked to Lee Hysan, who established Lee Hysan Estate Co., Ltd. () in 1923, securing land leases over Jardine's Hill and East Point (present-day Causeway Bay) on Hong Kong Island. Prior to his death in 1928, Lee allocated the majority of shares to relatives while retaining only a one-fifth stake, which was inherited by his wife.
At that time, East Point was largely a residential area with some British commercial offices. The transformation of Jardine's Hill into an entertainment district—now known as Lee Garden—and the construction of Lee Theatre as a venue for Chinese opera marked the start of continuous redevelopment within Causeway Bay.
Formation and Expansion of Hysan Development
Hysan Development was established on 20 October 1970 under the name Hennessy Development Company Limited. In 1971, it acquired a land lease from Lee Hysan Estate to redevelop the Hennessy Centre located on Hennessy Road; this building was subsequently demolished to make way for newer projects. The firm became an unlisted public company in 1973, offering 25% of its shares to the public. Tai Cheung Holdings held a minority interest during this period. The company went public on the Hong Kong Stock Exchange in September 1981.
During the 1970s, Hysan expanded by acquiring affiliated companies such as Leighton (禮頓發展), Sunning (新寧地產), and Avenue from its parent entity. This expansion brought ownership of five major properties including Hennessy Centre, Leighton Centre, One Hysan Avenue, Sunning Court, and Sunning Plaza.
Following its public listing, Hysan broadened its portfolio through additional land lease acquisitions from both the Lee family and Lee Hysan Estate throughout the 1980s and 1990s. These included properties at 74–86 Kennedy Road (currently Bamboo Grove) and redevelopment projects converting Lee Theatre and Lee Gardens Hotel into Lee Theatre Plaza and Lee Garden One respectively. Redevelopment approval for the former Lee family mansion site on Kennedy Road was granted in 2017.
In the early 1990s, properties along Yun Ping Road were redeveloped into Lee Garden Two (previously Caroline Centre). In 1987, Hysan acquired a 5% shareholding in HKR International and issued new shares to members of the Lee family just before the Black Monday market crash. This era was also overshadowed by allegations of bribery connected to share listing activities.
By 1991, Hysan negotiated the sale of its Garden Terrace residential units in Mid-Levels and developed Tanner Garden in North Point for sale purposes, retaining a 30% stake in that project. Additionally, it maintained a 5% investment position in Cathay Pacific Airways.
The opening of Hysan Place in 2012 on the site formerly occupied by Hennessy Centre introduced roughly 710,000 square feet of combined office and retail space. This development achieved pre-certification at Platinum level under both USGBC LEED and Hong Kong’s BEAM environmental standards.
Completion of Lee Garden Three occurred in 2017 amid debate surrounding the demolition of Sunning Plaza—a building designed by architect I. M. Pei—which had been regarded as an architectural gem despite being only three decades old.
In 2016, Hysan collaborated with HKR International to establish Strongbod Limited. This joint venture successfully secured a government tender to acquire two adjacent residential land leases in Tai Po for development into Villa Lucca.
Hysan Development's shares are traded on the Stock Exchange of Hong Kong and are also available over-the-counter in London. Additionally, the company maintains a sponsored listing for its American Depositary Receipts (ADRs) on the OTC Markets Group platform.
Portfolio
As of 31 December 2017, Hysan Development’s core portfolio consists of ten main property complexes, primarily fully owned except for Lee Garden Two, where the company holds a 65.36% stake. The leasing floor areas include:
- Lee Garden One (commercial, also known as Manulife Plaza)
- Bamboo Grove (residential)
- Villa Lucca (residential, developed in partnership with HKR International)
- Lee Garden Two (commercial, alternatively called Caroline Centre)
- (commercial)
- Lee Theatre Plaza (commercial)
- (commercial)
- (commercial)
- Lee Garden Five (commercial, also referred to as 18 Hysan Avenue)
- Lee Garden Six (commercial, located at 111 Leighton Road)
- Hysan Place (commercial property situated at 500 Hennessy Road)
Hysan Place was inaugurated in 2012 on the previous location of the Hennessy Centre and the former Mitsukoshi department store.
Six of these properties are situated wholly or partly on a land lease known as Inland Lot No.29, a historic crown lease established in 1842 with a duration of 999 years. This lease arrangement results in comparatively low government rent relative to contemporary leases.
The company has actively contested height restrictions imposed by the Town Planning Board in the Wan Chai and Causeway Bay districts, which posed risks to redevelopment potential. These regulations were introduced to "enhance the aesthetics of Victoria Harbour's coastline" and preserve the ridgeline of Hong Kong Island from tall structures. After an initial defeat in the High Court, Hysan appealed to the Court of Final Appeal, which sent the matter back to the Town Planning Board in 2016. The revised draft Outline Zoning Plan received approval by September 2018, with media reports highlighting advantages for Hysan and other local developers.
Previously owned properties, Sunning Plaza and Sunning Court, were demolished to facilitate construction of Lee Garden Three. Furthermore, a development site in Tai Po was under construction as part of Hysan’s ongoing expansion efforts.
Founded in 1970, Hysan Development traces its origins to its predecessor and largest direct shareholder, Hysan Estates Limited (formerly Lee Hysan Estate Company Limited), which was established in 1923. By December 2017, Hysan Estates was wholly owned by Lee Hysan Company Limited, an entity incorporated in Jersey and believed to be controlled by the Lee Hysan family.
Despite its family-run nature, by 1981 the board had incorporated external directors including Kwok Tak-seng (Sun Hung Kai Properties), Geoffrey Yeh (Hsin Chong), Chan Pun (Tai Cheung Holdings), and Hu Fa-kuang. Harold H.W. Lee, son of founder Lee Hysan and director at Lee Hysan Estate, passed away in 1980. After leaving government service in the late 1980s, former Hong Kong Chief Secretary David Akers-Jones joined as an independent director and later served as independent non-executive chairman until Irene Lee succeeded him in 2011.
As of December 2017, the board consisted of nine members: four independent non-executive directors—including Lawrence Lau—four representatives from the Lee family, and Hans Michael Jebsen, a business associate and minority stakeholder in Lee Garden Two via Barrowgate Limited.
Among the four Lee family board members, three also held directorships at Hysan Estates and Lee Hysan Co. Ltd. Executive chairman Irene Lee, who is Anthony Lee’s sister and fellow director, does not hold directorships within these parent entities. Both siblings have held non-executive roles across other family-related ventures such as Cathay Pacific Airways (Irene Lee) and TVB (Anthony Lee). Former director Lee Chien had affiliations with Swire Pacific, part of the Swire Group conglomerate that includes Cathay Pacific Airways among its real estate interests.