In an attempt to increase sales in retail shops in Vogue Alley, Causeway Bay, Hang Lung Development's investment property arm Amoy Properties is expected to invest $10 million on a refurbishing plan.
There are 40 retail shops in the 300,000-square-foot Vogue Alley, which is surrounded by Paterson Street, Kingston Road, Cleveland Road and Houston Street.
An Amoy source said the main reason for low patronage was that shoppers were reluctant to visit the place due to bad ventilation.
The company was expected to meet an architect this week to discuss the refurbishment plans, estimated to cost $10 million, the source said.
However, most tenants' leasing agreements in Vogue Alley would expire this month and Hang Lung had only renewed the agreement on a short-term basis at a relatively low rate.
Some tenants said the short-term leases had rental rates cut by half. They were also worried that Hang Lung, in a bid to attract more customers, might favour more upmarket international labels.
Fashion designer Walter Ma, who leased a 1,000 sq ft shop in Vogue Alley said the developer so far had shown no indication as to whether the leasing agreement would be renewed.
