Despite a depressed market, Hong Kong’s Hang Lung Properties is boldly expanding in mainland China with shopping centres.
Its latest addition is the Olympia 66 in Dalian, in the north-east, the group’s eighth shopping centre in China. It has seven storeys as well as three basement levels, providing about 222,000 sqm of floor space for about 300 tenants. There is a cinema, skating rink and piano school.
About 40 brands are scheduled to make their Dalian debut in Olympia 66, which opens fully next month, including chocolatier Godiva and Ralph Lauren Kids. However, with the government clampdown on luxury spending, only about half the tenants have moved in so far, reports Nikkei Asian Review.
Over the next few years, says chairman Ronnie Chan, developments are planned for Kunming in Yunnan Province, and Wuhan in Hubei Province. Two Shanghai developments will also be restored. This will take Hang Lung’s annual investment on the mainland to more than HK$6 billion (US$644 million).
Founded in 1960, Hang Lung started with large-scale condominium developments along Hong Kong’s subway lines, after which it expanded into developing and managing offices, shopping centres and other major commercial developments.
The company entered the mainland in the 1990s, and its malls concentrated on high-end fashion with such brands as Hermes and Gucci.