By Summer Zhen

HONG KONG, Sept 12 (Reuters) - Arrowpoint Investment Partners, one of the largest hedge funds launched in Asia this year, has leased an entire floor at Hong Kong's new Six Pacific Place as it rapidly expands, according to three sources familiar with the matter.

The hedge fund, founded by Jonathan Xiong, former Asia co-CEO of Millennium Management, took up the 22nd floor of the office tower owned by Swire Properties in Wanchai.

The firm is expected to move from its current co-working space to the nearly 8,000 square feet (743 sq m) new space in the first quarter next year, said a source with direct knowledge of the matter.

Arrowpoint has been on a hiring spree since it kicked off trading in July. The $1 billion multi-manager fund backed by investors including Blackstone and CPPIB, is headquartered in Singapore with the additional office in Hong Kong.

It is on track to more than double its number of employees to about 100 people in the first quarter of 2025, with about 60% in Singapore and the rest in Hong Kong, according to the source. By then it will own over 20 trading teams.

Arrowpoint declined to comment on the business plan.

While many foreign firms have closed offices or trimmed operations in Hong Kong in recent years amid geopolitical tensions and a faltering capital market, global hedge funds such as Citadel and NorthRock have been bucking the trend.

They are lured by Hong Kong's low tax rates and rich talent supply, according to industry insiders.

JLL data shows the overall vacancy rate of Grade A offices in Hong Kong rose to 13.7% as at the end of July.

Arrowpoint's Singapore office plans to move to Marina One in the first quarter, according to the source with direct knowledge of the matter.

(Reporting by Summer Zhen; Editing by Sonali Paul)

((summer.zhen@thomsonreuters.com; 852-3462-7739;))