Hang Lung group says it will spend $43 million to upgrade the space formerly occupied by Japanese retailer Matsuzakaya in Causeway Bay. The move is part of its plan to improve the competitiveness of the 200,000 square foot retail portfolio in Causeway Bay left vacant after the closure of the Matsuzakaya and Daimaru department stores in September and December. The group's leasing and management director, Lana Howell, said the 65,000 sq ft of retail space at the Hang Lung Centre, formerly occupied by Matsuzakaya, would be opened up, with clear glass instead of the existing blocked wall after the renovation. The four retail levels at Hang Lung Centre would be re-opened by autumn, she said. The retail portfolio in Causeway Bay is owned by Hang Lung's investment arm, Amoy Properties. Ms Howell said a European fashion retailer had been secured as a tenant and it would move into the Hang Lung Centre after the renovation. The group was in active discussions, she said, with various prospective tenants to take up the 135,000 sq ft retail space formerly occupied by the two Daimaru department stores. Ms Howell said there were negotiations with several companies looking for 10,000-15,000 sq ft at its Fashion Island first floor, formerly leased by Daimaru. The company said earlier it planned to divide the 38,000 sq ft retail floor at Fashion Island into smaller shops to facilitate the lease. Ms Howell said it was an option but the proposed plan for the retail floor was still under consideration. In addition, about 90 per cent of the first floor at Daimaru Family Square had been leased so far, she said.