Hong Kong Landmark, a luxury shopping mall, to double its space
Hongkong Land has attracted well-known brands to upgrade its shopping centres in Hong Kong. The investment in the modernisation of Landmark was US$1 billion. The financing involved the participation of the mall’s tenants. Hermes, LVMH, Chanel, and Prada are among the ten brands contributing funds.
According to analysts, the modernisation of the mall indicates the future of the luxury goods industry. After the refurbishment, the company plans to offer the famous tenants large areas for their shops. It is also an indication of the popularity of the luxury sector in the metropolis.
Features of the Hong Kong shopping mall project
Landmark Shopping Centre is Hong Kong Land’s most significant project and is central to the city. The modernisation includes:
– construction of multi-storey shops for ten luxury brands;
– the shopping centre is expected to double in size;
– the design of the project will be modern. The emphasis will be on customer comfort.
In addition to the shops, there will be new cafes and restaurants in the shopping centre.
It is worth noting that this refurbishment will be one of the largest in the building’s history. The Landmark has been open for 44 years and is a popular location for both locals and visitors to the city.
Analysts estimate ten global premium brands will spend about US$600 million renovating their stores, and Hong Kong Land will invest US$400 million. The companies have signed a 10-year lease with the mall’s owner.
Hongkong Land’s Michael Smith noted that the developer plans to complete the redevelopment within three years. The building owner intends to cover the costs by taking profits from investments in other properties. There are several properties in Singapore.
Redeveloping the two lower floors will increase the area of the shopping centre. Now, office premises are there. The tenants of this space will be relocated to another of the developer’s buildings.
Risks for the sector
Experts point out possible risks Hongkong Land may face in the redevelopment process. This is mainly due to retail trends in Hong Kong. In the past, the metropolis served as a shopping centre for tourists from China, but now the situation has changed. Hong Kong and its shopping centres have serious competitors, such as the island of Hainan. The latter offers favourable conditions for both sellers and buyers. It has a tax-free zone, so the cost of goods is lower than elsewhere. Another popular shopping destination in China is Macau. Here, retail facilities are complemented by casinos and restaurants, making the city an ideal holiday destination.
Given these facts, Hong Kong is losing ground, which could affect retailers’ revenues. Especially when it comes to premium products.