Chinese Estates expects surge in rental income
Chinese Estates expects annual rental income from the One in Tsim Sha Tsui and the Windsor House shopping arcade in Causeway Bay will increase 10 per cent this year as it benefits from a change of tenant mix and strong retail sales.
The firm will hold exhibitions during the Lunar New Year season to attract shoppers. It expects visitors at the two shopping centres to reach 650,000 during the holiday from January 21 to 26 - a rise of 30 per cent from last year. Turnover is expected to climb 20 per cent to HK$55 million.
If Chinese Estates' four other shopping centres are included in the above holiday forecast, the company expects the number of shoppers to rise 22 per cent to 1.2 million. Revenue is expected to jump 15 per cent.
Chinese Estates will arrange visits to the One, Windsor House and Silvercord in Tsim Sha Tsui for 30 tour groups from Guangdong province during the holiday. Each visitor is expected to spend HK$3,000 to HK$6,000, which is expected to boost retail sales by about HK$6 million.
Vice-chairman Lau Ming-wai said the outlook for the retail market was still positive, despite the economy being clouded by the European debt crisis.
'We have seen international brands continue to expand in Hong Kong. Even if the growth in retail rents is narrower this year from a year ago, I don't think it will be substantial,' Lau said.
Separately, Sino Land's Tmt Plaza in Tuen Mun will spend HK$5 million on decorations and promotional activities at the shopping centre during the Lunar New Year.
The developer expects to boost retail sales to more than HK$750 million this month, 10 per cent more than January last year.
The shopping centre will arrange for 10 tour groups from Guangzhou and Shenzhen to visit during the holiday.
The amount, in HK dollars, Chinese Estates expects in turnover from the One and Windsor House during the Lunar New Year holiday