New mega mall to open its doors in Causeway Bay
Hysan Development's flagship, Hysan Place in Causeway Bay, is scheduled to open next month, after a six-year build-up.
Hysan Place, formerly the Hennessy Centre, will be the largest shopping mall completed in Hong Kong this year and opens on August 10.
Chairman Irene Lee Yun-lien of Hysan Development yesterday said the average retail rent for Hysan Place was about HK$150 per square foot.
Based on the total retail space of 450,000 sq ft, the developer is expected to generate monthly rental income of about HK$67.5 million from Hysan Place. The company said the retail occupancy rate at Hysan Place had increased to 98 per cent, from 95 per cent in March.
'We believe it will be fully let when it opens in August,' Lee said.
Given its location in the key shopping zone of Causeway Bay, Cissy Chan, Hysan's director of retail portfolio and marketing, said it could attract 100,000 shopper visits a day.
While growth in mainland tourist spending has slowed since Chinese New Year, the company was still upbeat. 'Causeway Bay is attractive to different shoppers. We are targeting different types of shoppers, not only tourists, but also locals,' Chan said.
Lau Siu-chuen, Hysan's deputy chairman and chief executive, said retail rents in Hong Kong had seen unexpectedly sharp growth over the last few years. 'But the trend will be more rational this year and next,' he said. 'The mainland economy will continue to grow long-term. We are not worried about a slowdown in mainland tourists' spending. We don't think it will affect our business.'
The developer demolished the Hennessy Centre, which used to house Japanese department store Mitsukoshi, in 2006. The site at 500 Hennessy Road was then developed into Hysan Place, a 40-storey office and retail building with a total gross floor area of 710,000 sq ft. The office occupancy rate was about 40 per cent in March, but Hysan did not give updated figures yesterday.
The building has 17 retail floors, which have been leased to more than 120 firms. Most of the space will be taken up by fashion brands such as Gap and Nanette Lepore. Taiwan's largest bookstore chain, Eslite has leased more than 41,000 sq ft for its first shop outside Taiwan. Apple is also expected to open a three-level store in the mall. Shares in Hysan Development rose 0.8 per cent to close at HK$31.50 yesterday. The Hang Seng closed down 0.16 per cent.
The monthly rental income, in Hong Kong dollars, the developer expects to generate from Hysan Place