SHKP expects 20pc rental rise at apm
Sun Hung Kai Properties expects rental income from its flagship mall in Kowloon to increase 20 per cent to HK$350 million this year as tenants have registered brisk sales since January.
Maureen Fung Sau-yim, SHKP leasing department general manager, said the apm shopping mall next to Kwun Tong MTR station would reach targeted sales of HK$1.38 billion set for the first two quarters.
The forecast would be 20 per cent higher than a year ago, while the number of visitor arrivals would reach 46 million, she said. Fung said sales for the whole year would be HK$3 billion. 'Sales revenue at our mall is within our expectations as local shoppers' spending mood was not adversely affected by the deteriorating global economic environment,' she said.
The city's low unemployment rate and soaring property prices have lead to an increase in wealth, and growth in the retail market should continue.
To sharpen its competitive edge, the developer planned a HK$100 million facelift for the six-year-old shopping mall in the wake of the government's announcement it would redevelop East Kowloon into the city's second core business district.
The renovation would be done in two phases and the whole project was slated for completion by 2013, she said.
Fung said the promotional budget for the apm shopping mall - where mainland shoppers accounted for 20 per cent of total sales - would be HK$60 million, up 10 per cent from a year ago. Of the total HK$60 million, 35 per cent would be directed at luring mainland shoppers to the mall, she said.
Average spending among mainlanders was HK$5,000 to HK$20,000, up 20 per cent from a year ago, Fung said. She expects the upcoming Father's Day could ring up sales of HK$28 million.