Hang Lung Properties’ upgrades cost $2 billion
Hang Lung Properties has invested more than HK$2 billion (US$257.2 million) in stages since 2012 to upgrade its core retail assets in Hong Kong and in Mainland China.
Leasing and sales director Norman Chan Ka-ngok says the assets enhancement exercise will enable the company to achieve 30 per cent growth in rental income.
It spent $1.4 billion to refurbish two shopping malls in Shanghai, Grand Gateway 66 and Plaza 66, and about $600 million has been earmarked to upgrade malls in Hong Kong, he says.
With retail sales in Hong Kong falling in recent years, Hang Lung’s retail tenant mix there tends to be more in line with lifestyle and family brands rather than luxury products, says Chan. In the first quarter of this year, tenants in its malls achieved single-digit growth.
Work started last month on enhancing The Peak Galleria mall (pictured), which will be undertaken in two stages with completion expected in 2019.
Hang Lung Properties will look at introducing specialty brands to enhance the shopping experience for tourists visiting The Peak, says assistant director for leasing and management Joyce Lee.
Meanwhile, Chan says the refurbishment of Plaza 66 in Shanghai has been largely completed, with about 30 new tenants being introduced.