New World Development – the Hong Kong-based real estate company controlled by the billionaire Cheng family – is in talks with luxury giant Louis Vuitton to open a large-scale store at its K11 Musea mall, according to Bloomberg.

The proposed store would span approximately 40,000sqft, potentially making it one of Louis Vuitton’s largest locations in Asia.

If the deal goes through, it would signal confidence in Hong Kong’s retail sector, despite recent declines in sales and a slow recovery in tourism.

New World Development also faces its own challenges, including debt obligations and leadership transitions.

Earlier this year, the company pledged key properties valued at US$19.1 billion to refinance its debts. The Cheng family is also undergoing a succession process, with patriarch Henry Cheng seeking a successor to lead their business.

While negotiations are ongoing, the agreement has not yet been finalised, and key details such as rental terms remain unclear. Neither New World Development nor LVMH has commented on the matter.